• With a strong bearish sentiment, ADA could drop by 15% to reach the $0.71 level.
• On-chain metrics revealed that the exchanges have witnessed an outflow of $30 million in ADA tokens.

Amid the bearish market sentiment, Cardano [ADA] is poised for a notable price decline due to bearish confirmation on its daily timeframe.

Additionally, the prevailing market sentiment and traders’ bearish activity have further strengthened this negative outlook.

Traders heavily shorting ADA

According to on-chain analytics firm Coinglass, traders are potentially taking advantage of the current market sentiment by strongly betting on the short side.

Data reveals that traders holding long positions are over-leveraged at $0.85, with $4.10 million worth of long positions.

Meanwhile, short sellers seem to be dominating, being over-leveraged at the $0.912 and $0.926 levels, currently holding $16.77 million worth of short positions.

This on-chain data shows that short sellers are three times stronger than traders holding long positions. This indicates a bearish signal.

Investors’ bullish view 

Besides traders, long-term holders and investors see the current market sentiment as an opportunity, to accumulate ADA tokens.

Data from Spot Inflow/Outflow revealed that exchanges have witnessed an outflow of $30 million ADA tokens in the past 48 hours, indicating potential accumulation.

Some experts see this outflow as an ideal long-term buying opportunity.