Cardano (ADA) bulls are losing power: A decline may come.
Cardano (ADA), which has been rising rapidly in recent days, may face a decline in the short term.
Cardano ($ADA ) has continued to rise over the last two weeks, reaching a two-year peak of $ 0.81 on November 16. However, it has pulled back slightly from this level and is currently trading at $ 0.75. Onchain data and analysis of technical indicators indicate that this downtrend may continue and ADA may not reach $ 1 in the short term.
Data on Cardano's net flow on exchanges indicates that investors are turning to profit taking. According to Coinglass data, as of November 18, #ADA recorded a total net inflow of $ 7.21 million. Increasing inflows to exchanges indicate that investors are transferring their assets to exchanges to sell. This may increase selling pressure and lead to a downward movement in the price.
In addition, the decrease in ADA's trading volume in the last 24 hours supports this downward trend. Cardano’s price increased by 7 percent, while its trading volume decreased by 57 percent in the same period.
ADA trades were largely profitable on Monday. According to Santiment data, the profit-loss ratio of trading volume is currently at 3.35, the highest since June 2020. The data means that for every losing $ADA trade, 3.35 trades are profitable. This high profit-loss ratio indicates profit taking for Cardano investors.
ADA is currently trading at $0.75, just below its two-year high of $0.81. If buying pressure does not increase, the price could pull back to $0.69. If the bulls fail to defend this level, the ADA price could fall to $0.61.
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