ADA On-Chain data analysis shows that the altcoin is “mostly bearish” after the entire crypto market saw a strong correction from the attempted breakout week. Cardano was not excluded from this drop as we are seeing further in the latest ADA price news.
From this week’s highs, the well-performing altcoin experienced a drawback of over six percent. This is close to the charts of Bitcoin and Ethereum but unfortunately for the ADA holders, the data from the top blockchain analytics firm shows that the ADA on-chain data predicts a further downtrend. According to the data shared by blockchain firm IntoTheBlock, Cardano is most likely to remain bearish from the exchange data standpoint as well.
1/ I am massively bullish on #Bitcoin, but I think the next big move is likely down.@glassnode just reported the largest $BTC transfer from miners to exchanges in over a year. pic.twitter.com/Uwj4hHveyx
— Cole Garner (@ColeGarnerBTC) June 24, 2020
The company’s dashboard suggests that the crypto market four core metrics of Cardano as bearish while one of the other core metrics is bullish, and the others remaining neutral. The bearish metrics are the concentration or the status of large holders of a cryptocurrency, large transactions valued over $100,000, smart price derived from the buy and sell orders compositions, and the bid-ask volume imbalance. The movements in on-chain and exchange data don’t always correspond with the price action.
Another analysis from Coinalyze reported that the ADA volume for the futures options on Binance, HuobiDM, and OKEx, dropped over the past weeks. This suggests that the buying strength that boosted the cryptocurrency, is slowly dampening away. The bearish outlook for Cardano is reflected in one of Bitcoin. This is related to the leading cryptocurrency leading the rest of the digital assets. Coin Metrics in fact is currently registering a correlation between the ADA price and the BTC price. The on-chain data analyst Cole Garner aggregated a number of reasons why Bitcoin will see another retracement from the $9000 level.
Glassnode as well reported that there was a massive withdrawal from Bitcoin miners to exchange wallets which suggests mines expect another downside in the near future and are slowly cashing out to remain profitable. Institutions are bearish as well, according to the CME bitcoin futures data as they increased short positions via the CME before the dump to $3700 in March. At last, Bitfinex’s order book was skewed massively to the sell-side for more than six weeks. According to Garner, this was an accurate leading indicator of Bitcoin’s next move that saw a swing for the past nine months.
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