#ADA Cardano’s Long/Short Ratio Slips — Is a Drop Below $0.70 for ADA on the Horizon?

Cardano (ADA) saw an impressive rally in July, gaining nearly 30% in value—one of its best performances in recent months. This surge was largely boosted by favorable macroeconomic news that triggered strong buying activity across the crypto market.

However, despite the strong price performance, recent data from Coinglass reveals signs of market instability. Cardano experienced over $7.79 million in total liquidations, with a significant majority of about $7.54 million coming from long positions. This means that many traders who bet on the price continuing to rise were forced to close their positions, likely due to sudden price rejections or high volatility.

In the short term, trading activity remains strong, with a 12% increase in 24-hour volume pushing it up to $2.54 billion. But not all indicators are positive. Open interest, which shows how many futures contracts are still active, has dropped by 8%, now standing at $1.28 billion. This decline suggests that fewer traders are keeping positions open, possibly hinting at a low confidence in further price gains.

The long/short ratio has slipped below 1 to 0.8829, meaning there are more short bets than long ones. About 53% of traders expect ADA to fall further. With sentiment turning bearish, selling pressure is rising, and ADA is struggling to break through its immediate resistance levels.

What’s Next for ADA Price?

Cardano (ADA) dropped below its 20-day exponential moving average (EMA) at $0.76, a sign that sellers might be gaining control.

There’s some support around $0.67, but if that fails, the price could fall further to $0.51

A break and close above the 20-day SMA would be the first sign of strength, showing that sellers are losing momentum. If that happens, buyers might try to push the price past the key resistance around the descending trend line.

A break above the trend line might send the ADA price soaring. A surge above the resistance line could begin an upward trend toward $1 for Cardano price.