More Crypto Online, a crypto channel disclosed that Cardano's [ADA] bottom was not yet in, and another decline could be close
Cardano’s “We have seen only a 3-wave corrective rally. These are typically not bullish and ADA might break down or movie sideways.”The Elliot Wave is a technical theory that looks at recurrent price patterns. This way, traders can catch the tops and bottoms of a cycle.
However, More Crypto Online mentioned that ADA’s breakdown below the $0.48 support implied that any bullish bias has been invalidated. Therefore, the price could slide down Wave 5 which could signal a large degree of downswing. Should this happen, the price of the Cardano native token might slide to $0.42.But if this recent theory holds water, that prediction could be set back. However, technical data alone would not cut it for Cardano. Hence, we checked out theFirst off, AMBCrypto looked at the Open Interest . For context, OI refers to the sum of all open positions connected to a contract in the derivatives market.
The inference in this case is that sellers are the aggressive ones. If this decline goes unchecked, the prediction of $0.42 could be validated.Besides the OI, we also analyzed the liquidation levels and CLLD. CLLD stands for Cumulative Liquidation Levels Delta . Liquidation levels predict price levels where price large liquidations might occur.
With this metric, traders can decide whether to go long or short. For the CLLD, its positive value indicates more long liquidations. On the other hand, negative values of the CLLD suggest more short liquidations.Therefore, this bearish bias could restrict ADA from starting an upside movement. For the time being, the price of the token could drop to $0.40. This might be the target in a highly bearish situation.Victor Olanrewaju is a full-time journalist at AMBCrypto.
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