- ADA has retraced 6.4% from its monthly peak of $0.62.
- Whale addresses increased following the correction.
Cardano [ADA] dipped substantially in the last two days of trading, effectively reversing all the gains made earlier in the week.
The eighth-largest asset retraced 6.4% from its monthly peak of $0.62 made on the 20th of February, according to CoinMarketCap. In the last 24 hours, the coin barely moved, leading to a decline in trading volumes as well.
AMBCrypto’s analysis of Santiment data showed a negative market sentiment for the coin as of this writing, underlining the fallout of the recent correction.
Source: Santiment
Tough days ahead for ADA?
The bearish narrative was amplified by popular technical analyst Ali Martinez who spotted a sell signal on ADA’s 3-day chart. “It’s important to note that the last two times this indicator signaled bearish, ADA experienced a price correction,” Martinez alarmed.
While predictions by seasoned folks do hold value when it comes to investing, remember to DYOR before proceeding further.
AMBCrypto looked into other additional technical indicators to check the validity of the aforementioned claim.
ADA faced a correction after the Relative Strength Index (RSI) hit the overbought level of 70. Since then, buying pressure has softened considerably. But since RSI was still above neutral 50 as of this writing, it was too early to paint a conclusive bearish signal for ADA.
The Moving Average Convergence Divergence (MACD) line was about to make a bearish crossover with the signal line, indicating that it may be time to sell.
Source: Trading View
Whales don’t miss the opportunity
Interestingly, ADA whales seemed to have utilized the pullback to fill up their coffers. Data from Santiment revealed increase in addresses holding more than 1,000 coins since the 2oth of February.
Amidst all the bearish indicators, this came as a strong statement in favor of ADA in the medium to long term.
Source: Santiment
Read ADA’s Price Prediction 2024-25
ADA’s derivatives market bearish
Meanwhile, short position traders continued to dominate ADA’s futures market. According to AMBCrypto’s analysis of Coinglass’ data, the Longs/Shorts Ratio has remained below 1 throughout February, implying higher expectations of ADA’s decline than its rise.
Source: Coinglass
