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Cardano: Can shorts take advantage of ADA’s dwindling volume

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ADA’s price action stayed close to the $0.239 support level, as market participants continued to book profits early.

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Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

  • ADA confined to compact trading range, as buyers were unable to rally. 
  • Shorts looked to ramp up selling pressure with a large share of open contracts.

Cardano’s [ADA] dwindling trading volume kept its price action close to the $0.239 support level. A recent price report highlighted the tendency of market participants to book their profits early after a bounce from the support level.


Here’s ADA’s market cap in BTC terms


The quick profits and ADA’s bearish market structure have limited the altcoin’s ability to register sustained gains. With Bitcoin [BTC] dropping back to the $26k price level, ADA sellers could look to flip the support level in the short term.

Range low could cave to selling pressure

Cardano ADA price chart on dark background

Source: ADA/USDT on Trading View

Between 17 August and 24 September, ADA has traded a compact range ($0.238 to $0.28). Despite buyers bouncing from the $0.239 support level, the inability to break above the lower low ($0.28) has stifled the bullish rally.

As of press time, ADA was again close to the range-low with evidence heavily favoring bears. The On Balance Volume (OBV) continued to trend lower while the Relative Strength Index (RSI) remained under neutral 50. Both signaled a lack of bullish momentum and buying pressure.

If bears flip the range-low to resistance, the short-term target lies at $0.22 which was briefly touched on 10 June. Otherwise, bulls could hold the support, although this would be dependent on a good uptick in volume for ADA.


Read Cardano’s [ADA] Price Prediction 2023-24


Speculators increased short positions in anticipation of range breakout

Source: Coinglass

The exchange long/short ratio data revealed the pessimistic outlook for traders in the futures market. The 12-hour timeframe showed that short positions held a 52.61% share of the open contracts.

This translated to a $4.44 million difference between short and long positions. Furthermore, it hinted at another wave of selling pressure which could see ADA drop to $0.22.

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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