Cardano could fall another 12%, ADA price prediction for August 8

In this ongoing market recovery, most of the top assets including Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) have experienced a significant upside move. Whereas, the Proof-of-stake (PoS) blockchain Cardano (ADA) remains dull compared to the top 10 assets by market capitalization. 

ADA open interest declines by 8%

With its decent performance, ADA looks bearish. At number 10 with a market capitalization of over $11.63 billion, it is currently trading near $0.324 and has experienced a price drop of 2% in the last 24 hours. Meanwhile, ADA’s trading volume also dropped by 37% during the same period.

At the same time, its open interest (OI) also dropped by 8%, which signals lower interest from traders and investors, according to an on-chain analytic firm CoinGlass. 

According to expert technical analysis, ADA is at a crucial support $0.321 level in a 4-hour time frame. If it gives a breakdown of this level and closes a 4-hour candle below $0.319, there is a high chance it could fall another 12% to the $0.28 level in the coming hours.

On the other hand, if sentiment changes and ADA price soars and gives a 4-hour candle closing above $0.35, there is a high chance it could rally 20% to the $0.41 level in the coming days. However, this will potentially happen following the implementation of the hard fork. 

Cardano major liquidation levels

As of now, the ADA’s major liquidation levels are near $0.302 on the lower side and $0.341 on the upper side. If the market sentiment remains unchanged and the price falls to the $0.302 level, nearly $1.85 million of the long position will be liquidated. Conversely, if sentiment changes and ADA soars to the $0.341 level, nearly $4.25 million of short positions will be liquidated. 

This large amount of liquidation in short positions compared to large positions signals bearishness in ADA.