Cardano Price Faces Shakeout Risk as Longs Crowd Near Support
Cardano (ADA) is currently facing a high risk of a shakeout as its price hovers near support at $0.24. The token has declined by 3% in the last 24 hours, with a tight intraday range of only $0.01. This lack of strong conviction from buyers or sellers suggests that the current bias is tilting lower.
The derivatives landscape is also adding complexity to the situation, with top Binance Futures traders and retail accounts both showing high long positioning. However, aggressive selling is dominating, as indicated by the taker buy/sell ratio at 0.77. This combination of high longs and persistent selling often precedes a shakeout.
The technical picture is also bearish, with momentum indicators such as the MACD histogram and Stochastic indicator showing signs of exhaustion. The Bollinger Bands highlight $0.23 as a strong support area, but any failure to reclaim this level could lead to further decline towards $0.21.