- ADA’s on-chain metrics with technical analysis indicated mixed sentiment among traders.
- 53.2% of top traders held short positions, while 46.8% held long positions.
The sentiment in the cryptocurrency market is quite confused. Amidst this, Cardano (ADA) looks bullish and is poised for a notable rise in the coming days.
Over the past few weeks, ADA has lost almost 20% of its value and reached a level where it had previously seen an impressive rally.
However, ADA’s bullish outlook was likely driven by recent price action and the upcoming U.S. presidential election.
ADA Technical Analysis and Key Levels
According to AMBCrypto technical analysis, ADA was at a crucial support level of $0.315 and was heading higher. Historically, whenever ADA hits this support level, it tends to experience buying pressure, resulting in an upside of at least 20%.
Source: TradingView
Since July 2024, the asset has reached the support level three times, each time experiencing buying pressure and a price increase of over 20% to the $0.40 level. This time around, traders and investors were also expecting a similar bullish recovery, which could happen in the coming days.
However, this positive outlook and the expected recovery may take some time to occur. ADA’s on-chain metrics reflected bearish sentiment among traders. According to on-chain analytics firm Coinglass, ADA’s Long/Short ratio stood at 0.88, indicating strong bearish sentiment.
Additionally, ADA’s open interest decreased by 1.2% over the past 24 hours. This drop in OI suggests a potential liquidation of traders’ positions due to increased volatility in the cryptocurrency market.
As of press time, 53.2% of top traders held short positions, while 46.8% held long positions.
Main liquidation levels
The main liquidation levels were $0.323 at the bottom and $0.338 at the top, with traders overleveraged at these levels, according to Coinglass data.
Source: Coinglass
If sentiment remains unchanged and the price reaches the $0.338 level, nearly $1.79 million worth of short positions will be liquidated.
Read Cardano (ADA) Price Prediction 2024-2025
Conversely, approximately $2.43 million of long positions will be liquidated if sentiment changes and the price falls to the $0.323 level. A combination of these on-chain metrics with technical analysis indicated mixed sentiment among traders.
At press time, ADA was trading near $0.33 and was unchanged over the past 24 hours. During the same period, its trading volume fell by 62%, indicating reduced participation from traders and investors compared to previous days.
