Cardano (ADA) derivatives traders are showing strong confidence that the altcoin will recover from its recent price drop, according to recent data from BeInCrypto and Coinglass.
ADA has recently hit a seven-day low of $0.35 amid challenging market conditions. Despite this, traders remain optimistic about a rebound. Data from Coinglass reveals that the 4-hour Long/Short ratio for ADA stands at 2.91, indicating that nearly 75% of traders are betting on a price increase, with only 25% predicting further declines.
This bullish sentiment is supported by on-chain data from IntoTheBlock, which shows that ADA holders are increasingly holding onto their assets. The Coins’ Holding Time metric has risen by 64% over the past week and 103% over the past month, suggesting confidence among holders.
The Moving Average Convergence Divergence (MACD) indicator also points to potential bullish momentum, despite ADA’s 15% price drop since Saturday.
A positive MACD reading suggests a possible price increase if ADA maintains its position above $0.34. Failure to hold this level could lead to further declines, potentially to $0.31. Conversely, maintaining support could push ADA towards $0.39.
Traders are also wary of a potential long squeeze, which could occur if a significant price drop forces those betting on a rise to sell their positions to mitigate losses.
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