Cardano Price Prediction: $0.85 Support Tested as ADA Faces Bearish Pressure
ADA is under selling pressure, trading at $0.871 with $1.28 billion in daily volume. Santiment’s Network Realized Profit/Loss (NPL)...
Quick overview
- ADA is currently trading at $0.871 with significant selling pressure and a daily volume of $1.28 billion.
- The Network Realized Profit/Loss metric has reached its highest level since July, indicating that many holders are cashing out at gains.
- Sentiment is bearish, as evidenced by a long-to-short ratio of 0.87, suggesting traders expect further declines in ADA's price.
- ADA is at a critical juncture, with key support at $0.8528; a break below this level could lead to further declines.
ADA is under selling pressure, trading at $0.871 with $1.28 billion in daily volume. Santiment’s Network Realized Profit/Loss (NPL) metric has spiked to its highest since July, meaning many holders are cashing out at gains. While this is profit taking and not structural weakness, it’s adding pressure to ADA’s price action.
Analysts note this selling has coincided with a 7% two day drop, so traders are looking to lock in short term profits. For ADA to stabilize, sustained closes above support zones will be key.
Sentiment Signals Bearish Bias
Sentiment is getting cautious. Coinglass shows the long-to-short ratio has fallen to 0.87, its lowest in over a month. A ratio below 1 means traders are bearish and think ADA will go down.
Key Market Metrics:
- Long-to-short ratio: 0.87 (bearish)
- NPL spike: highest since July
- Two day price drop: 7%
Combined, this means ADA is short term fragile. Unless buying momentum picks up, more downside risk.
Technical Outlook: ADA at a Crossroads
On the charts, ADA has broken below the trendline and struggling to get back above the 50-EMA at $0.8819. Rejection at $0.923 formed a bearish engulfing candle and successive closes below the moving averages confirm momentum is weakening.
The RSI is at 44, not oversold yet, so room for sellers to push further. The key zone is $0.8528—a break here and ADA could go to $0.8264 and possibly $0.8033. Above $0.8843 and it’s the first sign of recovery, targeting $0.9018 and $0.9234.
For beginners, think of ADA as “testing the floorboards”. If the floor at $0.8528 breaks, it could be a steep fall. If it holds, buyers might regain control.
Trade Setup: Aggressive traders can short below $0.8528, targeting $0.8264 with stops above $0.8843. Conservative traders can wait for a confirmed bounce above $0.8843, targeting $0.9018 with stops under $0.8528.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save