ADA has fallen 7.43% in a few days as part of a strong bearish trend.
Leading indicators are pointing to a continuation of the bearish trend as #ADA tries to create another support level.
#Cardano [ADA] has been showing declines for the past 30 days. Over the past seven days, prices have fallen by 7.43%. As of today, ADA is trading at $0.4074 and daily volume is up 15.32% to $213 million.
According to coinmarketcap, ADA has a market value of $14.5 billion, up 1.13% in 24 hours.
According to AMBcrypto analysis, ADA is set for a breakout; a break below $0.406 would create another support level.
The bearish trend will continue until the structure changes or another strong support emerges. Thus, current trading indicates that the market has a persistent bearish bias and will continue until lower support near $0.356 appears.
A reversal at $0.403 would take prices to $0.487. However, the current market trend is bearish and is likely to continue.
Indeed, ADA's CMF is currently at minus 0.15, indicating increasing selling pressure. A negative CMF usually means that the bearish trend is continuing.
When selling pressure intensifies, there are more sellers than buyers and prices fall.
According to Coinglass, the ADA-weighted funding rate is declining. A declining funding rate usually means that shorts are paying for long positions, indicating a bearish trend and sentiment.
If futures are trading at a discount to spot, this puts downward pressure on prices.
Similarly, Santiment's data on total ADA open interest in USD indicates a decline in trading activity. A decrease in open interest indicates a decrease in the number of trades in the futures market, which in turn indicates an emptying of the #order book.
Such changes in market sentiment lead to increased volatility of trading volumes. Such a change suggests a bearish trend in which forced liquidation occurs.
How far will ADA fall?
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