Recent trends in Cardano's price movement have led to a significant uptick in futures traders leaning towards short positions, indicating prevailing bearish sentiment towards ADA.
As Cardano's market momentum wanes, there is a growing tendency among traders to bet on a price decrease, underscoring caution in the altcoin's prospects.
Data from Coinglass reveals that Cardano's Long/Short Ratio has reached a monthly low of 0.82, highlighting the elevated demand for short positions. This ratio evaluates the proportion of long (buy) positions versus short (sell) positions for an asset. A ratio below one, such as ADA's current figure, suggests a higher number of traders are betting on a price fall, thus exerting additional downward pressure on its market value.
Additionally, ADA’s Weighted Sentiment, currently at -0.074, further solidifies the negative outlook surrounding the cryptocurrency. This metric assesses the overall market sentiment by examining social media volumes and tones. A negative sentiment score points to increasing investor skepticism, which commonly leads to decreased trading activity and further pressure on the asset's price.
Significantly, trading activity among ADA whales has decreased over the past week. According to IntoTheBlock, large holders' netflow has dropped by 90.29%. These investors, holding more than 0.1% of the circulating supply, heavily influence market trends. A decline in their netflow suggests waning buying interest, contributing to ADA’s price vulnerabilities.
Currently valued at $0.98, ADA remains above a key support level at $0.90. Continued bearish sentiment might push the price to test this threshold. Failing to hold could precipitate a further decline to as low as $0.80. Conversely, a resurgence in buying activity may stabilize ADA above the $1 mark.