Cardano Traders Anticipate Price Recovery Despite Recent Declines
Cardano (ADA) derivatives traders are showing strong confidence that the altcoin will recover from its recent price drop, according to recent data from BeInCrypto and Coinglass.
ADA has recently hit a seven-day low of $0.35 amid challenging market conditions. Despite this, traders remain optimistic about a rebound. Data from Coinglass reveals that the 4-hour Long/Short ratio for ADA stands at 2.91, indicating that nearly 75% of traders are betting on a price increase, with only 25% predicting further declines.
This bullish sentiment is supported by on-chain data from IntoTheBlock, which shows that ADA holders are increasingly holding onto their assets. The Coins’ Holding Time metric has risen by 64% over the past week and 103% over the past month, suggesting confidence among holders.
The Moving Average Convergence Divergence (MACD) indicator also points to potential bullish momentum, despite ADA’s 15% price drop since Saturday.
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U.S. Bitcoin ETFs Face $127 Million in Outflows, Ending Positive StreakA positive MACD reading suggests a possible price increase if ADA maintains its position above $0.34. Failure to hold this level could lead to further declines, potentially to $0.31. Conversely, maintaining support could push ADA towards $0.39.
Traders are also wary of a potential long squeeze, which could occur if a significant price drop forces those betting on a rise to sell their positions to mitigate losses.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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