Cardano’s price action has remained lackluster over the past 24 hours, even after Coinbase launched a wrapped version of its native token, cbADA, on its Ethereum layer-2 network, Base.
The altcoin has failed to capitalize on the announcement and has shown weak price performance since the rollout.
Cardano Extends Losses Despite cbADA Going Live on Base
On Wednesday, leading cryptocurrency exchnage Coinbase announced the launch of cbADA, a wrapped version of Cardano’s native coin, on its Base network.
Fully backed 1:1 by ADA held in Coinbase custody with proof-of-reserves, cbADA aims to bring Cardano liquidity into the Ethereum DeFi ecosystem.
However, despite the added utility, this development has failed to boost ADA demand over the past day. The coin trades at $0.564, down 3% over the past day.
During that period, its trading volume has spiked almost 10%, confirming the climbing selling pressure. As of this writing, ADA’s daily trading volume stands at $649 million.
When an asset’s price falls while trading volume rises, it signals strong selling pressure, as market participants offload their positions. This pattern indicates bearish sentiment among ADA holders and foreshadows further price declines if the sell-off continues.
Additionally, ADA’s long/short ratio in the futures market has tilted heavily in favor of shorts. At press time, this is at 0.96.
This ratio compares the number of long and short positions in an asset’s futures market. When its value is above 1, there are more long than short positions, indicating that traders are predominantly betting on a price increase.
Conversely, as seen with ADA, a ratio below one indicates that most traders are positioning for a decline. This signals the heightened bearish sentiment and growing expectations of continued downside movements among ADA holders.
Cardano Slips as Sellers Take Control
On the ADA/USD daily chart, the negative readings from the coin’s Balance of Power (BoP) support the bearish outlook above. Right now, this is at -0.18, suggesting seller dominance.
The BoP indicator measures the strength of buyers versus sellers in the market, helping to identify momentum shifts. When its value is positive, buyers dominate the market over sellers and drive newer price gains.
Conversely, negative BoP readings signal a strong bearish presence and hint at further declines. If this trend persists, ADA’s price could extend its decline to $0.511.
However, the coin’s value could rally toward $0.642 if demand climbs.
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