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- Selling pressure rebuffed bullish rebound attempts.
- Shorts look to extend gains with a major share of exchange long/short ratio.
Cardano’s [ADA] retest of the $0.3 resistance level saw bulls on the losing end, as price declined by 5% to maintain the bearish slump. This was despite the best attempt by the bulls to quickly reclaim the $0.3 level after it was cracked in early August.
Read Cardano’s [ADA] Price Prediction 2023-24
Meanwhile, Bitcoin’s [BTC] weak price action kept it under the $29.5k price zone. A weak BTC could further affect ADA’s recovery plans in the short term.
Bulls frustrated by selling pressure
Buyers have been consistently rebuffed after the bearish rejection at the $0.376 resistance level. Although bulls rallied briefly at the $0.3 level, it was short-lived with bears cracking the level on 2 August.
The intense selling pressure has presented a significant challenge for bulls to reverse ADA’s dwindling price action. A look at the chart indicators didn’t present any hope for bulls in the near term.
The On Balance Volume (OBV) continued to decline slowly, illustrating the waning interest in ADA. In a similar fashion, the Relative Strength Index (RSI) remained in the negative zone, underscoring the selling pressure over the past week.
With all evidence in favor of bears, sellers can look to extend gains between $0.24 to $0.26. On the flip side, bulls would be hoping that the $0.239 support level can usher in a rebound, just like it did in early June.
Shorts dominate exchange long/short ratio
How much are 1,10,100 ADA worth today?
The bearish inclination extended to the futures market, as revealed by Coinglass. Shorts controlled the exchange long/short ratio, holding a 52.32% share of the open contracts. This cemented the bearish bias in the short term, as bears look to maximize the selling momentum.