Cardano (ADA) Plunges for 4 Consecutive Days... "190 Million Dumped in a Week"

▲ Cardano (ADA), Cryptocurrency Decline/AI Generated Image

According to crypto media outlet FXStreet on July 8 (local time), Cardano slipped below $0.175 on Wednesday, marking its fourth consecutive day of decline. An expanded sell-off by large holders, weakened derivative indicators, and deteriorating technical trends have combined, giving sellers the upper hand.

According to supply distribution data from on-chain analytics firm Santiment, whale wallets holding between 100,000 ADA and 1 million ADA, 1 million ADA and 10 million ADA, and 10 million ADA and 100 million ADA have reduced their total holdings by 190 million ADA since July 1. This renewed selling by whales after last week's rebound has increased short-term selling pressure.

The derivatives market has also leaned bearish. According to CoinGlass, Cardano's long/short ratio reached 0.79 on Wednesday, nearing its lowest level in over a month. A ratio below 1 indicates more traders are betting on a decline. The weighted funding rate for open interest also turned negative at -0.006%, showing a trend where short positions are paying fees to long positions.

Cardano remains below its 50-day Exponential Moving Average (EMA) at $0.185, 100-day EMA at $0.216, and 200-day EMA at $0.289. The MACD (Moving Average Convergence Divergence) has turned positive, and the RSI (Relative Strength Index) is near 50, but upward momentum remains limited.

On the upside, the Fibonacci 23.6% retracement line at $0.173, the 50-day EMA at $0.185, and the Fibonacci 38.2% retracement line at $0.195 successively form resistance. Between $0.213 and $0.217, the Fibonacci 50% retracement line, the 100-day EMA, and the broken downtrend line overlap. Conversely, $0.15 is presented as the primary demand zone, and $0.138 as the Fibonacci cycle low. To reduce short-term downward pressure, Cardano needs to recover and hold above $0.173.

[Key Article Summary]

-Cardano whale wallets have reduced their total holdings by 190 million ADA since July 1, increasing short-term selling pressure.

-The long/short ratio neared its lowest level in over a month at 0.79, and the weighted funding rate for open interest turned negative at -0.006%.

-Technical bottom demand zones are $0.15 and $0.138, and recovery and maintenance above $0.173 are needed to alleviate short-term downward pressure.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*