ADA dropped 12% but still maintains crucial support, with nearly 80% of traders taking buy positions in anticipation of a strong price reversal.
Most investors are still betting on the previous upward trend of ADA, however, significant selling pressure on exchanges raises concerns about the risk of further deep declines.
MAIN CONTENT
ADA dropped 12% to a strong support level, attracting a large number of traders to open buy positions.
Nearly 80% of traders on Binance have taken Long positions, creating a significant risk of a stark divide between expectations of a reversal and the risk of continued declines.
The incoming ADA flow to exchanges valued at nearly $6 million poses significant selling pressure, which may affect short-term price movements.
What is ADA and what is the latest price trend?
ADA is the native token of Cardano – one of the prominent blockchain platforms today. In the past 48 hours, ADA has dropped by up to 12%, testing a crucial support zone, making the trading market more active than ever.
The recent strong fluctuations highlight the community's reaction as ADA approaches a critical support zone, which is often when speculative funds begin to flow in. This attention stems from historical expectations that ADA has repeatedly bounced back at this price level in the past.
Trading around support can stir both fear and greed, leading to hasty actions from both experienced speculators and newcomers to the market.
Source: AMBCrypto, August 20, 2025
Nearly 80% of traders chose Long: Is this a smart decision?
Currently, ADA is trading at $0.8565, down over 9% in 24 hours. This decline has led to a 22% increase in trading volume, reflecting investors' expectations to find a bottom and strong entry.
On Binance, the Long/Short ratio for ADAUSDT reached 3.99, indicating that the number of Long positions overwhelmingly dominates Short positions. Specifically, 79.96% of accounts are Long, while only 20.04% lean towards Short (source: CoinGlass, August 20, 2025). This raises significant questions about the sustainability of buying pressure in the short term.
An excessively large Long/Short ratio often poses the risk of a strong squeeze, as a series of liquidations could cause the market to move contrary to expectations.
CoinGlass report, August 20, 2025
These numbers reflect strong confidence from traders; however, the market leaning heavily to one side also means high risk if adverse fluctuations occur, especially in the context of skyrocketing trading volumes while prices remain on a downward trend.
Source: CoinGlass
Technical trend: Will ADA hold its support trendline?
AMBCrypto's recent technical analysis shows that traders expect ADA to reverse at the support level, stemming from the price touching the ascending trendline since early August 2025.
On the 4-hour chart, ADA continuously respects the trendline, reinforcing confidence in the possibility of a price rebound if this threshold is not breached. If maintained, ADA has the potential to increase by 14% to the resistance area of $0.9791; if it surpasses the $1 mark, the target of $1.2 (an additional 20% increase) is the scenario many traders are aiming for.
The intersection of the ascending trendline and strong support has become a capital flow convergence point, often signaling the next phase of significant volatility.
Source: AMBCrypto, August 20, 2025
However, the Supertrend indicator has turned red and is above the price, reflecting dominant selling pressure. Additionally, the RSI is at 39.97 – approaching the oversold area – suggesting the possibility of a corrective reversal, but risks remain if a decisive upward trend is not established soon.
Source: TradingView
ADA inflow to exchanges nearly $6 million: Short-term selling panic risk?
Despite the market sentiment leaning towards recovery, on-chain data shows that ADA's inflow to exchanges reached $5.95 million in the past 24 hours, raising concerns that selling pressure may continue.
Typically, the inflow of coins to exchanges indicates that large holders are taking profits or preparing to sell, posing a wave of continued selling if the price is not absorbed timely by buying force.
The inflow of capital into exchanges is a notable on-chain signal, especially during times of increased selling pressure and market volatility.
CoinGlass report, August 20, 2025
Source: CoinGlass
Large coin flows to exchanges like now often create potential resistance zones at short-term prices due to supply and demand effects, making any upward rebound of ADA subject to 'slowing down' or even reversing if strong selling is triggered.
What should ADA investors be cautious about at this moment?
Although the majority are betting on a recovery trend and short-term technical indicators may support this scenario, the extreme polarization in the Long/Short ratio and the inflow of coins into exchanges pose significant risks, especially if the downtrend has not yet ended.
With nearly 80% of Long accounts, a sudden drop or strong volatility is likely to trigger a chain of liquidations, leading to deeper declines than usual.
The ability of ADA to recover will depend not only on technical factors but also on the stability of capital flows and the risk aversion mindset of large holders.
Source: AMBCrypto, August 20, 2025
Investors should closely monitor technical indicators, on-chain data, and the flow of money on exchanges to make appropriate decisions rather than relying solely on crowd sentiment, especially when the market shows clear signs of divergence.
Frequently asked questions about ADA and current market fluctuations
ADA has just dropped sharply; can it recover quickly?
A quick recovery for ADA will only occur if the support trendline is held and no significant selling pressure emerges, according to AMBCrypto's technical analysis.
How does the Long/Short ratio of 80/20 affect investment risk?
The overwhelming Long ratio indicates optimistic sentiment but poses risks of unusual volatility if many positions are liquidated simultaneously.
What is the flow of ADA into exchanges and what does it signify?
This is a signal that holders are preparing to sell or take profits, warning that selling pressure may increase significantly in the short term.
Is the RSI near the oversold area significant?
The RSI approaching the strong selling area often accompanies a technical reversal potential, but combining it with on-chain data and market sentiment leads to clearer conclusions.
What scenario could help ADA return to the $1 mark?
If support is maintained and there is strong buying momentum along with improved volume, ADA may head back towards the $1 region, according to current technical analysis.
What strategy should investors prioritize when the market is highly volatile?
Prioritize risk management, continuously update capital flow data, limit the use of high leverage, and consider taking profits at important resistance levels.
Is the Long/Short information an absolutely accurate buy/sell signal?
These indicators should only be viewed as references, combined with technical analysis, on-chain data, and macroeconomic conditions to make rational decisions.
Source: https://tintucbitcoin.com/cardano-ho-tro-manh-ada-tang-gia/
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