Cardano Short Positions Increase: What Should You Do With Your ADA?

  • There was a significant increase in short positions taken against ADA.
  • There was also a huge drop in activity on the Cardano network.

cardano [ADA] It is one of the many coins that have not been performing well compared to other tokens over the past few weeks.

Due to this, the short position taken against the ADA increased. In the last 12 hours, ADA was the third most traded token among all cryptocurrencies.

Screenshot 2024 05 11 at 4.18.35%E2%80%AFPM


ADA's decline began after March 27 when it tested the $0.6700 level. The price declined by 35% during this period, while performing several lower lows and lower highs, indicating a bearish trend.

Over the past few weeks, there has been no sign of a reversal for ADA. The CMF (Chaikin Money Flow) indicator also declined significantly. The fall in CMF indicated that money coming into ADA had fallen.

Additionally, the RSI (Relative Strength Index) for ADA also fell below 36, meaning that the bullish momentum around ADA had materially weakened.

ADAUSDT 2024 05 11 16 23 05

Source: TradingView

social activity is increasing

On the social front, things were looking positive for ADA. Social volume for ADA has remained consistent over the past month, showing that the token is gaining popularity on social media platforms.

At press time perception about the ADA had also increased, meaning that positive comments about the ADA outnumbered negative comments.

ADA's popularity on social media could play a significant role in a potential reversal in its price in the future.

Cardano ADA 16.31.03 11 May 2024 1

Source: Sentiment

How is ADA doing?

Talking about the status of the token, it was observed that there has been a huge decline in the speed of ADA.

Surprisingly, despite the drop in price, the number of ADA token holders continued to increase.

The increasing number of ADA holders suggests that there may be some retail interest in the ADA token, however, it is not significant enough to drive the price of ADA higher.

Cardano ADA 16.46.34 11 May 2024

Source: Sentiment

read cardano [ADA] Price Prediction 2023-24

The Cardano protocol was also performing poorly. Over the past month, the number of daily transactions on the network dropped from 90,000 to 45,000.

Additionally, the number of daily active addresses on the network also fell from 70,000 to 29,000 during the same period.

Screenshot 2024 05 11 at 5.04.14%E2%80%AFPM

Source: Artemis

Leave a Comment

“The Untold Story: Yung Miami’s Response to Jimmy Butler’s Advances During an NBA Playoff Game” “Unveiling the Secrets: 15 Astonishing Facts About the PGA Championship”