[Traders expect Cardano price to rebound as stop-loss bets surge]
ADA has faced challenges recently and is currently trading at a 7-day low of $0.35. Despite the poor market conditions, traders are optimistic about ADA’s recovery. Data from Coinglass shows that Cardano’s 4-hour long-short ratio is 2.91, indicating that 75% of traders are holding long positions in anticipation of higher prices.
On-chain data also shows ADA holders are confident that the token will recover from losses. Coin holding time has grown by 64% and 103% in the past 7 days and 30 days respectively, which means that holders are reluctant to sell, which may help stabilize the price.
Although ADA price is down 15% since Saturday, the MACD indicator shows bullish divergence, signaling a possible price rebound. If ADA can remain above $0.34, it is expected to rise to $0.39 in the short term; conversely, if it falls below $0.34, the price may retrace to $0.31.
Additionally, a significant price drop could trigger long liquidation, leading to a long squeeze. A long squeeze occurs when traders who anticipate a price increase are forced to sell to avoid further losses.
