Cardano (ADA) has recently experienced a significant surge in short-selling activity, marking the highest shorting versus longing ratio since September 2023, according to Binance data. This increase in short positions raises questions about whether this bearish sentiment could trigger a rebound rally for ADA.
According to data from Santiment on X (formerly Twitter), both Cardano and XRP (XRP) are experiencing significant shorting activity by traders following recent relief bounces.
“Cardano and XRP are a couple of the most notable altcoins that are seeing heavy trader shorting following relief bounces. This is a good sign for patient bulls, as liquidate shorts can effectively act as ‘rocket fuel’ for continued price rises.”
ADA 7-day price chart. Source: Finbold
With ADA hitting $0.40, Sssebi suggests a further drop to $0.38 is possible if Bitcoin continues to decline. The best approach, according to Sssebi, is to employ dollar-cost averaging (DCA) at these prices, anticipating a significant bounce once the current dip is over.
As I previously said, the dump wasn't over.$ADA just hit $0.40 and this is an incredible opportunity to load up your bags.We could still see $0.38 if Bitcoin continues to dump, best way is to DCA at these prices.Huge bounce incoming once this dump is over. https://t.co/q9raVYpHOu pic.twitter.com/hnpZNOENTM
— Sssebi? (@Av_Sebastian) June 14, 2024Moreover, Cardano recently outlined plans for a significant step towards full decentralization as part of the “Chang” hard fork upgrade.The convergence of high short selling activity and strategic developmental advances could indeed transform the current bearish momentum into a catalyst for a robust bullish rally in ADA’s market.
As these dynamics unfold, the crypto community and investors are closely watching, poised for potentially volatile market movements.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
