Cardano’s Downtrend Continues as THIS Pattern Emerges – Will ADA Make New Lows?

• Cardano has formed a double top pattern on the daily chart, indicating a bearish reversal.
• The increase in ADA spot inflows suggests that selling pressure could increase and push prices lower.

Cardano [ADA] has performed worse than Bitcoin [BTC] Considering that the altcoin has slightly increased by 0.4% in the last seven days and was trading at $0.347 at press time. ADA also showed signs of consolidation as the price fluctuated in a narrow range between $0.339 and $0.35 over the last 24 hours.

ADA’s bearish pattern is emerging

The bearish trends surrounding ADA could continue as the daily chart shows the formation of a double top pattern. This pattern usually indicates a trend reversal, with ADA now primed for a downtrend if sentiment does not turn positive.

The ADA bears tested the neckline of this double top pattern at $0.339, also the 100% Fibonacci level, before the price bounced off. If ADA breaks this support and falls lower, the price is likely to fall to $0.319.

For ADA to invalidate this bearish pattern and confirm an uptrend, it must rise above $0.37. However, it lacks the buying support required for such gains.

The Relative Strength Index (RSI) is at 46, showing that sellers are in control. Furthermore, the RSI line is trending south, indicating that the bearish momentum is gaining strength. The negative Chaikin Money Flow (CMF) also paints a bearish picture as selling pressure continues.

Data from Coinglass confirms that ADA traders are actively selling. Spot inflows recently rose to $4.28 million, the highest level since mid-August. This suggests that traders are transferring their coins to exchanges with the intention of selling them.

Analysis of derivatives data

The derivatives market shows that while sentiment is positive, bearish signals remain. ADA’s open interest had increased to $238 million at press time Coin jar. This indicator is at its highest level this month, indicating that interest in altcoins is high.

ADA’s long/short ratio was 1.07, showing that there are slightly more long traders than short traders. On Binance, more than 90% of open interest on Cardano is long, indicating market optimism.

---

Read Cardanos [ADA] Price forecast 2024-2025

---

Despite this long bias, traders betting on ADA profits continue to record losses. In the last 24 hours, $441,000 worth of ADA long positions were liquidated, while only $16,750 worth of shorts were liquidated.

Nevertheless, whale activity could signal a reversal in the ADA price trend. Large ADA transactions recently increased suggesting whales could be congregating.