Cardano Under Siege 🐻 — Traders Bet Big Against ADA Below $0.58
Cardano fell over 6% on Monday, extending last week's 10% slump under selling pressure.
On-chain and derivatives statistics show negative trends with daily active addresses falling and short holdings at their highest this month.
Technical indications indicate a bearish view, with momentum signs indicating additional drop.
Cardano (ADA) falls 6% to $0.58 on Monday, extending last week's 10% drop. Weakening on-chain activity and increasing trader short holdings indicate bearishness. As momentum indicators show weakness, technical indicators anticipate additional decline.
Cardano's on-chain and derivatives are bearish.
Santiment's Daily Active Addresses index tracks network activity over time and is negative. Blockchain use increases as the measure rises, whereas dropping addresses indicate lesser demand.
Cardano's Daily Active Addresses dropped to 24,280 on Monday from 32,115 on October 11 and have been falling since August. This reduction suggests ADA's blockchain use is declining, which might lower Cardano's price.
On derivatives, CoinGlass's ADA long-to-short ratio was 0.75 on Monday, the lowest in a month. A ratio below one indicates pessimistic market sentiment, as more traders are speculating on asset price decline.
Last week, Cardano's price fell almost 10% after hitting $0.70. On Monday, ADA was down to $0.57.
ADA may correct to $0.49, its next daily support, if it continues to fall.
Daily chart RSI is 32, below neutral at 50, suggesting strong negative momentum. The MACD lines are likewise converging, with fading bullish momentum shown by diminishing green histogram bars.
However, ADA might rebound to the daily resistance level of $0.70.
#Cardano #ADA #FOMCMeeting #WriteToEarnUpgrade $ADA