3 REASONS WHY CARDANO CAN SINK FURTHER DESPITE ADA PRICE BOUNCING 58%

Cardano (ADA) has experienced a rollercoaster ride recently, mirroring the broader volatility within the cryptocurrency market. 3 reasons why Cardano can sink further despite ADA price bouncing 58%⁣ adaprice reasons sink bouncing bounceFollowing a significant dip, ADA showed resilience, bouncing back impressively by 58% from a week-to-date low of $0.38 to an intraday high of $0.60 on May 13th. Cardano (ADA) pared a big portion of the weekly losses incurred during this week's crypto market rout.ADA's price reached an intraday high of $0.60 on May 13, a day after rebounding 3 reasons why Cardano can sink further despite ADA price bouncing 58%This resurgence mirrored similar recoveries seen in top cryptocurrencies like Bitcoin (BTC) and Ether (ETH), which rebounded by 23% and 25.75% respectively.While this price correction offered a glimmer of hope for Cardano bulls, a deeper analysis reveals underlying fundamental and technical factors that suggest the potential for further downward pressure on ADA's price.This isn't to say Cardano's long-term prospects are doomed, but rather that investors should proceed with caution and be aware of the potential headwinds.In this article, we'll delve into three critical reasons why Cardano's price could experience further declines, despite the recent bounce, providing you with a comprehensive understanding of the challenges ADA faces.

1.Bearish Sentiment Reflected in Liquidation Data

One of the key indicators suggesting potential further declines in ADA's price lies in the analysis of liquidation data. At the same time, the liquidation data isn t aligned with Binance traders bias, as approximately $921.46K amount of long positions were liquidated in the last 24 hours, compared to roughly $140.45K in shorts, signaling short-term bearishness weighing more in ADA price.Examining the balance between long and short positions on platforms like Binance provides valuable insights into market sentiment. ADA s trajectory hinges on the SEC s ETF verdict and its ability to hold $0.70. A bullish ETF outcome could propel ADA toward $0.84, while rejection or technical breakdown risks a drop to $0.64.Surprisingly, despite the price bounce, recent data reveals a significant imbalance in liquidations, favoring short-term bearishness.

Specifically, in the 24 hours preceding the price bounce, approximately $921,460 in long positions were liquidated, compared to a significantly smaller $140,450 in short positions.This stark contrast indicates that a large number of traders were betting on ADA's price continuing its downward trajectory, and their positions were forcibly closed as the price temporarily increased. 3 reasons why Cardano can sink further despite ADA price bouncing 58% ADA's price reached an intraday high of $0.60 on May 13, a day after rebounding from its week-to-date low of $0.38 aThe sheer volume of liquidated long positions suggests a prevailing bearish sentiment among traders, potentially signaling a lack of confidence in the sustainability of the price recovery.

This liquidation imbalance can create a self-fulfilling prophecy. A mix of fundamental and technical indicators suggests more pain for Cardano bulls ahead. Cardano (ADA) pared a big portion of the weekly losses incurred during this week's crypto market rout. ADA's price reached an intraday high of $0.60 on May 13, a day after rebounding from its week-to-date low of $0.38 a 58% rally. The huge upside retracement appeared in the wake of similar priceAs long positions are liquidated, it adds selling pressure to the market, further depressing the price and potentially triggering more liquidations.This cascade effect can exacerbate downward price movements and contribute to a more substantial correction.

How to Interpret Liquidation Data

• High Long Liquidation: Suggests a bearish outlook, as more traders are betting against the price increase.
• High Short Liquidation: Suggests a bullish outlook, as more traders are betting against the price decrease.
• Balance: Indicates more neutral sentiment, with roughly equal bets in both directions.

Therefore, paying close attention to liquidation data is crucial for understanding the underlying sentiment driving ADA's price movements and assessing the likelihood of further declines.In this case, the significant imbalance in long liquidations serves as a warning sign for potential downward pressure.

2.The Potential for Long-Term Holder (LTH) Sell-Off

Another significant factor that could contribute to further declines in Cardano's price is the potential for Long-Term Holders (LTHs) to sell their holdings.LTHs are investors who have held ADA for an extended period, often years, and their actions can have a significant impact on market dynamics. Cardano price prediction faces scrutiny as ADA s value continues to dip amid market fluctuations. Despite recent declines, investors and analysts are assessing whether ADA can rebound and reach new highs. The coming months will reveal if Cardano s fundamentals and upcoming developments canThese holders are more sensitive to macroeconomic indicators, potentially looking to take profits, cut losses, or re-allocate capital.

During periods of market uncertainty or economic downturn, LTHs may choose to sell their holdings to secure profits or mitigate potential losses. ADA's price reached an intraday high of $0.60 on May 13, a day after rebounding from its week-to-date low of $0.38 a 58% rally. The top ten crypto assets' recovery in the past 24 hours.This decision can be influenced by various factors, including:

• Macroeconomic pressures: Concerns about inflation, interest rate hikes, or economic recession.
• Alternative investment opportunities: The emergence of more attractive investment options with higher potential returns.
• Shifting risk appetite: A general reduction in risk tolerance, leading to a preference for safer assets.

If a significant number of LTHs decide to sell their ADA holdings, it could trigger a wave of selling pressure, overwhelming the market and driving the price down further.The magnitude of this impact would depend on the volume of ADA held by LTHs and the strength of their selling motivation.

The MVRV (Market Value to Realized Value) ratio is a useful metric for assessing the potential for LTH sell-offs. Cointelegraph By Yashu Gola Cardano (ADA) pared a big portion of the weekly losses incurred during this week s crypto market rout. ADA s price reached an intraday high of $0.60 on May 13, a day after rebounding from its week-to-date low of $0.38 a 58% rally. The huge upside retracement appeared in the wake of [ ]It compares the market capitalization of ADA to the realized capitalization, which represents the average price at which ADA was last moved on the blockchain. ADA s price reached an intraday high of $0.60 on May 13, a day after rebounding from its week-to-date low of $0.38 a 58% rally. The huge upside retracement appeared in the wake of similar price action in the crypto market with top cryptos Bitcoin ( BTC ) and Ether ( ETH ) rebounding by 23% and 25.75% since yesterday s lows.A high MVRV ratio suggests that ADA is overvalued compared to its historical cost basis, potentially incentivizing LTHs to take profits.Conversely, a low MVRV ratio suggests that ADA is undervalued, potentially discouraging LTHs from selling.

Strategies for Monitoring LTH Activity

1. Track on-chain data: Monitor the movement of ADA from older wallets, which are likely held by LTHs.
2. Analyze MVRV ratio: Assess the potential for profit-taking by LTHs based on the relationship between market value and realized value.
3. Follow market sentiment: Monitor news and social media for signals that LTHs are becoming more risk-averse.

Therefore, monitoring the behavior of LTHs and assessing their potential for selling is crucial for understanding the risks of further price declines in ADA. A mix of fundamental and technical indicators suggests more pain for Cardano bulls ahead. Continue reading 3 reasons why Cardano Cookie Policy 44 (0) 203 8794 460 Free Membership LoginA surge in LTH selling activity could significantly depress the price, regardless of any short-term bounces.

3. [ Ma ] 4 reasons why Solana (SOL) price could rally back to $180 Altcoin [ Ma ] Litecoin ETF has 90% chance to get SEC approval in 2025: Analysts LitecoinExternal Factors and Regulatory Uncertainty

The overall cryptocurrency market is highly susceptible to external factors such as regulatory developments, macroeconomic trends, and technological advancements. ADA s price reached an intraday high of $0.60 on May 13, a day after rebounding from its week-to-date low of $0.38 a 58% rally. The huge upside retracement appeared in the wake of similar price action in the crypto market with top cryptos Bitcoin (BTC) and Ether (ETH) rebounding by 23% and 25.75% since yesterday s lows.For Cardano, specifically, regulatory uncertainty, particularly regarding the potential classification of ADA as a security by the SEC, poses a significant risk.

The SEC's stance on cryptocurrencies has been evolving, and the potential for increased regulatory scrutiny has created uncertainty within the industry. ADA's price reached an intraday high of $0.60 on May 13, a day after rebounding from its week-to-date low of $0.38 a 58% rally. The huge upside retracement appeared in the wake of similar price action in the crypto market with top cryptos Bitcoin ( BTC ) and Ether ( ETH ) rebounding by 23% and 25.75% since yesterday's lows.If ADA were to be classified as a security, it could face stricter regulations, potentially limiting its availability on exchanges and hindering its adoption by institutional investors.This could, in turn, negatively impact its price.

Furthermore, the approval or rejection of a Bitcoin or Ethereum ETF can have a ripple effect on the entire crypto market, including Cardano.A positive ETF outcome often boosts investor confidence and attracts capital into the crypto space, potentially benefiting ADA. A mix of fundamental and technical indicators suggests more pain for Cardano bulls ahead. Cardano (ADA) pared a big portion of the weekly losses incurred during this week s crypto market rout. ADA s price reached an intraday high of $0.60 on May 13, a day after rebounding from its week-to-date low of $0.38 a 58% rally.Conversely, a rejection or delay in ETF approval can dampen sentiment and lead to market-wide corrections, putting downward pressure on ADA's price.

While the success of other altcoins like Solana and Litecoin can boost the entire market, Cardano also needs to compete with those platforms for market share and investment.Investors may choose those platforms instead based on perceived regulatory risks and recent hype.

Mitigating the Impact of External Factors

• Stay informed: Closely follow regulatory developments and macroeconomic trends that could impact the cryptocurrency market.
• Diversify your portfolio: Reduce your exposure to any single cryptocurrency, including ADA, by diversifying your investments across multiple assets.
• Manage your risk: Set stop-loss orders to limit potential losses in case of adverse price movements.

In addition to regulatory uncertainty, negative news events, such as security breaches, exchange hacks, or project setbacks, can also trigger sharp price declines. Cardano (ADA) pared a big portion of the weekly losses incurred during this weeks crypto market rout. ADAs price reached an intraday high of $0.60 on May 13, a day after rebounding from its 3 reasons why Cardano can sink further despite ADA price bouncing 58%Cardano's resilience depends on its ability to navigate these external challenges and maintain a positive reputation within the crypto community.

Cardano's Technical Analysis & Key Price Levels

Beyond the fundamental factors, technical analysis provides valuable insights into potential price movements. JPEX staff flee event as scandal hits, Mt. Gox woes, Diners Club crypto: Asia ExpressADA's price has struggled to consistently hold above the $0.70 level, indicating a significant resistance point.Failure to break through this resistance could lead to a retest of lower support levels, potentially as low as $0.64.

The $0.76 level has also acted as a resistance, with ADA testing it multiple times without a sustained breakout. A mix of fundamental and technical indicators suggests more pain for Cardano bulls ahead Cardano ADA pared a big portion of the weekly losses incurred during thisThe ability to break through these resistance levels is crucial for establishing a bullish trend and attracting further investment.

Key Levels to Watch

• Resistance: $0.70, $0.76, $1.18
• Support: $0.64, $0.38

Technical indicators, such as moving averages and relative strength index (RSI), can provide further confirmation of potential price trends.For example, if ADA's price falls below its 200-day moving average, it could signal a bearish trend and increase the likelihood of further declines.

However, technical analysis is not foolproof and should be used in conjunction with fundamental analysis to make informed investment decisions.Market sentiment and external factors can override technical signals, leading to unexpected price movements.

What About Cardano's Fundamentals and Future Potential?

Despite the potential for further price declines, it's essential to acknowledge Cardano's underlying strengths and future potential. 3 reasons why Cardano can sink further despite ADA price bouncing 58%Cardano is a proof-of-stake blockchain platform known for its research-driven approach and focus on sustainability. A mix of fundamental and technical indicators suggests more pain for Cardano bulls ahead.Continue reading 3 reasons why Cardano can sink further despite ADA price bouncing 58%The posIts robust architecture, continuous development, and growing ecosystem of decentralized applications (dApps) offer promising prospects for long-term growth.

Cardano's focus on peer-reviewed research distinguishes it from many other blockchain projects.This rigorous approach ensures that its technology is based on sound principles and has undergone thorough scrutiny, enhancing its reliability and security.

The Cardano ecosystem is constantly evolving, with new dApps and decentralized finance (DeFi) protocols being developed on the platform. Cardano (ADA) gained 8% between March 23 and March 25, once again testing the $0.76 resistance level, which has held for over two weeks. Although still far from its March 3 high of $1.18, tradersThis growing ecosystem can attract more users and developers, increasing the demand for ADA and driving its price upward.

Cardano's Strengths

• Research-driven approach: Ensuring technological soundness and reliability.
• Sustainable architecture: Minimizing environmental impact.
• Growing ecosystem: Attracting users and developers.

However, even with these strengths, Cardano's success depends on its ability to overcome the challenges mentioned earlier, including regulatory uncertainty and competition from other blockchain platforms. If LTHs choose to sell their holdings in response to market pressures, it could result in a wave of selling, further depressing Cardano s price. Cardano MVRV Long/Short Difference. Source: Santiment ADA Price Decline Is Possible. At the time of writing, Cardano s price is at $0.65, with the token hovering around the critical $0.66The coming months will be crucial in determining whether Cardano can capitalize on its potential and achieve new highs.

Conclusion: Navigating the Volatility of Cardano (ADA)

While Cardano (ADA) has demonstrated resilience with its recent 58% price bounce, several factors suggest that further declines are possible.The bearish sentiment reflected in liquidation data, the potential for Long-Term Holder sell-offs, and external regulatory uncertainties all pose significant risks to ADA's price stability.Understanding these factors is crucial for investors seeking to navigate the inherent volatility of the cryptocurrency market.

It's important to remember that the cryptocurrency market is inherently unpredictable, and past performance is not indicative of future results. Cardano (ADA) pared a big portion of the weekly losses incurred during this week s crypto market rout. ADA s price reached an intraday high of $0.60 on May 13, a day after rebounding from its week-to-date low of $0.38 a 58% rally. The huge upside retracement appeared in the wake of similar price action in theInvesting in cryptocurrencies carries significant risks, and it's essential to conduct thorough research and carefully consider your risk tolerance before making any investment decisions.

Therefore, while the recent price bounce may offer some encouragement, a cautious approach is warranted.By closely monitoring market sentiment, analyzing liquidation data, and staying informed about regulatory developments, investors can better assess the risks and opportunities associated with Cardano and make more informed investment choices.Will Cardano overcome these obstacles and thrive?Only time will tell, but informed investors will be best positioned to make strategic decisions.Consider consulting with a financial advisor before making any investment decisions related to Cardano (ADA) or other cryptocurrencies.