Sentiment for Cardano (ADA) has sharply fallen to a five-month low, yet the asset's price has still shown a 5% uptick. Large holders continue to accumulate despite caution among retail traders.
Decline in Sentiment for Cardano
Recent data indicates that sentiment for Cardano has reached its lowest level in five months. Even with retail traders' caution, ADA has priced up 5% in recent sessions due to activity from large holders. In late August, a bullish-to-bearish ratio of 12.8:1 led to a short pullback. Current readings closer to 1.5:1 indicate more fear than greed. 'The most bearish crowd sentiment in five months has already led to +5% gains,' one source noted.
Wyckoff Cycle Signals Possible Rally
Price action mapped against the Wyckoff cycle suggests ADA may have entered the markup phase, often referred to as the parabolic stage. This phase follows accumulation and breakout periods and is known for strong upward moves as demand outweighs supply. A current chart marks ADA at the start of this phase, where past cycles have shown sharp rallies and increased activity. 'Cardano may have just entered its parabolic phase,' one analyst said.
Shorts Facing More Liquidations
Coinglass data shows that short positions are under more pressure than longs. About $106.68K in shorts were liquidated compared to $52.22K in longs, reflecting losses for traders betting against ADA as the price moved higher. Overall trading activity is shifting: total volume is down 4% to $2.08 billion, while options volume dropped 93% to $6.59K. Futures open interest rose slightly to $1.58 billion, while options open interest edged down to $374.92K, indicating steady futures positioning but less activity in options.
In conclusion, despite the worsening sentiment for Cardano, the asset is showing growth thanks to the interest of large holders. Traders are watching to see if ADA can continue to gain momentum and reach new price levels.
