Cardano Price Under Pressure with Bears Tightening Their Grip

Key Insights:

• Cardano price bearish sentiment is strengthening as ADA’s long/short ratio fell below 1 and futures open interest dropped to $348 million, signaling weaker trader confidence.
• On-chain data points to capitulation, with Santiment’s NPL metric showing investors are increasingly selling ADA at a loss.
• ADA remains in a downtrend, with $0.148 emerging as the key support level that traders are watching amid ongoing selling pressure.

Cardano price kept dropping in mid-June. The price of ADA soared over the past 24 hours to $0.16, then fell by over 2% as of the 18th of June.

The ADA futures long/short account ratio is approaching 0.9, according to CoinGlass. A value below 1 indicates that more contracts are being held short than long. ADA crypto futures open interest has also decreased to approximately $348 million, which is approximately a multi-week low.

The bearish trend continues as on-chain analytics show Santiment’s Network Realized Profit/Loss dropped on June 17. That suggests many holders are exiting at a loss. All these indicators are a combined sign of strong selling pressure on Cardano price.

Cardano Price: Derivatives Data Signal Growing Bearish Sentiment

In the derivatives market, Cardano traders are taking a cautious stance. CoinGlass data shows ADA’s long/short ratio at 0.96 on June 19, its lowest level in over a month.

Cardano Derivatives Data | Source: CoinGlass

A ratio below 1 signals that short positions outweigh longs, meaning more traders are betting on a price drop.

Total futures open interest (OI) has also dipped to about $348 million. This OI level is down from earlier in June, hinting that some traders have stepped back.

Falling OI often points to lower participation and weaker conviction. In other words, a growing share of traders is positioned for a downturn. These trends align with ADA’s recent price decline and indicate bearish sentiment is dominating.

On-Chain Metrics Point to Capitulation

Blockchain data reinforces the sell-off. Santiment reports that Cardano’s Network Realized Profit/Loss (NPL) plunged sharply on June 17.

In simple terms, more ADA investors were realizing losses than profits. Spikes in such loss-taking often coincide with panic selling or capitulation.

Santiment notes that capitulation phases sometimes mark near-term lows. For example, a similar wave of loss-taking in mid-April was followed by a modest ADA crypto rebound.

However, there is a risk that any meaningful recovery could be hampered by the need for fresh buying interest to counter the current bearish momentum, cautioned analysts. Currently, the evidence on the chain is in the bears’ favor.

Cardano Price Technical Outlook: Technical Resistance and Technical Support

ADA is still technically in a downtrend as far as price is concerned. ADA was hovering around $0.160 on the 4-hour chart as of June 19, which is below its key moving averages.

Cardano Price Chart | Source: TradingView

Technical indicators are not strong. The 4-hour RSI is just below 50, the neutral level, suggesting that the bears are in control.

Buyers may appear if the 200-day EMA is approached in the near future. The first resistances are at $0.181, $0.202, and then at $0.210 – the 50-day EMA.

A wider range of resistance is found above that, from approximately $0.218 to $0.245. The bottom line is that immediate support is at the June 6 low around $0.148.

A breakdown of $0.148 could pave the way to further declines. At this time, resistance at $0.148 will be important to monitor in the event of ongoing selling.

On-chain data is bearish, with derivatives, on-chain metrics, and technicals all pointing in the same direction. The near-term outlook for Cardano price is ambiguous.

However, analysts say there is a need for a renewed buying interest to reverse the trend. To sum up, ADA price continues to be under pressure as bears tighten their grip.

For bulls to push Cardano’s price higher, a catalyst or a shift in sentiment would be required. Traders will be closely monitoring whether ADA can maintain support at $0.148 or if it fails to hold and continues to fall.

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