Cardano (ADA), which has been growing rapidly in recent days, may face a short-term decline.
Cardano (ADA)It continued to rise over the past two weeks, reaching a two-year high of $0.81 on November 16. However, it experienced a slight pullback from this level and is currently trading at $0.75. Analysis of Onchain data and technical indicators shows that this downtrend may continue and ADA may not reach $1 in the short term.
ADA Investors turned to profit recovery.
Data on the net flow of Cardano into exchanges indicates that investors are turning to profit-taking. As of November 18, ADA recorded a total net inflow of $7.21 million, according to data from Coinglass. An increase in inflows into the stock markets indicates that investors are moving their assets to the stock exchange to sell. This can lead to increased selling pressure and a downward movement in price.
Additionally, the decline in ADA’s trading volume over the past 24 hours supports this bearish trend. While Cardano’s price rose 7%, transaction volume fell 57% over the same period.
ADA trading was largely profitable on Monday. According to Sentiment data, the trading volume P/L ratio is currently 3.35, which represents the highest value since June 2020. The data in question means that for every ADA transaction that results in a loss, 3.35 transactions result in a profit. This high profit loss ratio indicates profit recovery for Cardano investors.
Currently, ADA is trading at $0.75, down from its two-year high of $0.81. If buying pressure does not increase, the price may fall to $0.69. If the bulls fail to defend this level, the price of ADA could fall to $0.61.
This article does not contain investment advice or recommendations. Every investment and trading venture involves risk, and readers should do their own research when making decisions.
