In this ongoing market recovery, most of the top assets including Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) have experienced a significant upside move. Whereas, the Proof-of-stake (PoS) blockchain Cardano (ADA) remains dull compared to the top 10 assets by market capitalization. It’s looking very bearish for ADA.

What should you expect ahead? Let’s explore.

Understanding the ADA Bearish Trend

Currently ranked number 10 with a market capitalization exceeding $11.63 billion, ADA is trading around $0.324, down 2% in the last 24 hours. Adding to the bearish sentiment, ADA’s trading volume has plummeted by 37% during the same period.

Further dampening the outlook, ADA’s open interest (OI) has dropped by 8%, indicating waning interest from traders and investors, according to on-chain analytics firm CoinGlass.

Cardano Technical Analysis

Technical analysts highlight that ADA is teetering on a critical support level at $0.321 on the 4-hour chart. A breakdown below this level, particularly with a 4-hour candle closing under $0.319, could trigger a further 12% decline, potentially driving the price down to $0.28 in the near term.

However, there is still hope. Should market sentiment shift and ADA manages to close a 4-hour candle above $0.35, the coin could rally by 20%, potentially reaching $0.41 in the coming days. This bullish scenario may unfold after the implementation of the upcoming hard fork.

Key Levels to Watch

As of now, the ADA’s major liquidation levels are near $0.302 on the lower side and $0.341 on the upper side. If the market sentiment remains unchanged and the price falls to the $0.302 level, nearly $1.85 million of the long position will be liquidated. Conversely, if sentiment changes and ADA soars to the $0.341 level, nearly $4.25 million of short positions will be liquidated. 

This large amount of liquidation in short positions compared to large positions signals bearishness in ADA.

Also Read : Top 3 AI Altcoins To Stack For 100% Upside This August!

What are your thoughts on ADA’s future? Will it bounce back or continue its downward trend? Share your predictions.