Key Insights:
- Cardano (ADA) has finally broken out of its prolonged consolidation and turned bearish.
- ADA is set for a 7% price drop, potentially reaching the $0.63 level.
- Traders have built $22 Million worth of short positions at $0.713, believing ADA won’t surpass this level.
Per the latest Cardano News, ADA, the native token of the Cardano blockchain, has ended its long period of consolidation.
After weeks of stagnation, the token has finally shown signs of breaking out. This breakdown comes after ADA lost 4% of its value on March 29, 2025.
ADA’s Bearish Breakout & Cardano News Highlight Price Decline Risks
The asset finally opened the path for further price decline following the breakdown. According to expert technical analysis, ADA has been trading between $0.69 and $0.75 for the past three weeks.
This prolonged consolidation indicated a period of market indecision. Recently, however, ADA broke below the lower boundary of this range, signaling a potential shift in momentum.
Based on recent price action and historical patterns, ADA may successfully close a daily candle below the $0.69 mark. There is a good chance that it will drop 7% to hit the $0.63 mark if this Cardano news occurs.
ADA could face further declines if the bearish trend persists and market sentiment does not improve. Experts suggest that a daily candle close below the $0.62 mark would confirm this downward momentum.
According to Cardano News, such a scenario might lead to a significant drop in its value. The projected decline could exceed 15%, pushing the asset down to the $0.522 level.
This development highlights the potential risk of continued bearish conditions for ADA in the near term. On the other hand, in the daily time frame, ADA traded below the 200 Exponential Moving Average (EMA). This indicated a bearish trend that may attract short sellers.
Current Price Momentum
At press time, ADA was trading near $0.67. Moving ahead, the token had experienced a price drop of over 4% in the past 24 hours.
As per the Cardano news, the asset trading volume plunged by 10% during the same period. This reflected reduced participation from traders and investors.
The bearish sentiment following the recent market breakdown likely influenced the decline.
Traders Go Bearish: Short Positions Surge
This strong shift in market sentiment and price decline occurred just before one of Cardano’s major upgrades, the ‘Leios Upgrade.’
Data showed that the current market structure doesn’t overlook developments or upgrades. This is because they seem to be causing a bearish outlook and a notable price decline.
Meanwhile, trading sentiment has shifted sharply pessimistic. As a result, many people have been betting on the short side. Coinglass, an on-chain analytics startup, reported the same.
Data revealed that traders are currently over-leveraged at $0.713 on the upper side and $0.659 on the lower side.
Over the past 24 hours, they have built $22 Million in short positions and $3.85 Million in long positions. This clearly defines the bearish outlook.