The post Cardano (ADA) Faces Bearish Trend as Futures Open Interest and Price Decline appeared on BitcoinEthereumNews.com.

Cardano’s (ADA) recent performance has raised eyebrows in the crypto market as it slips below its 20-day EMA. Adding to the concern, the open interest in ADA futures has seen a marked decrease since early June. “The decline in ADA’s price is reflective of the reduced buying pressure we’ve seen over the past weeks,” an analyst observed. Explore the latest Cardano (ADA) price movements and market sentiments in our in-depth analysis. Understand the key factors influencing ADA’s current trends. Cardano’s (ADA) Price Dips Below 20-Day EMA Cardano (ADA) recently experienced a substantial price decline, falling below its 20-day Exponential Moving Average (EMA) on June 7. During this period, ADA’s value dropped by nearly 10%, positioning its market price at around $0.41, according to CoinMarketCap data. The 20-day EMA is a crucial technical indicator that shows the average trading price of an asset over the last 20 days. When ADA’s market price drops below this level, it suggests that the asset is trading below its short-term average value, signaling potential bearish trends. Decreasing Buying Pressure and Increased Sell-Offs This drop under the 20-day EMA is indicative of declining buying pressure and an increase in sell-offs. The significant number of ADA sell-offs in the past week highlights this trend, particularly driven by profitable transaction opportunities during this period. Our analysis of ADA’s daily transaction volume, using a seven-day moving average, revealed a profit-to-loss ratio of 1.01 as of the latest data. This indicates that for every ADA transaction resulting in a loss, approximately 1.01 transactions were profitable, based on insights from Santiment. However, a majority of ADA investors are still facing unrealized losses. IntoTheBlock’s data shows that 3.04 million addresses, or 68.06% of ADA investors, are currently operating “out of the money,” meaning they hold the asset at prices higher than the…

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Filed under: News - @ June 15, 2024 6:28 pm