Not a good start of the week for Bitcoin and major altcoins across the board. The ADA price is no exception with a 5.5% dip today, now at around $0.71. However, YouTuber ‘LuckSide Crypto’ posted an interesting video last night for ADA holders.
In his latest analysis, LuckSide Crypto breaks down a noticeable shift in the crypto market dynamics. He points out that while Bitcoin appeared to start breaking out from its trend over the weekend, he wasn’t ready to call it a full breakout just yet. He emphasized that similar setups have reversed quickly in the past. Nonetheless, Bitcoin hitting $10.44 was the highest price point for the weekend, giving a sliver of optimism.
ADA, meanwhile, has been pushing the upper boundary of its trading range. On the hourly chart, it actually broke out – but like Bitcoin, it’s not a confirmed move. ADA has made similar false starts recently, failing to sustain upward momentum. But what really caught his attention was a significant shift in the derivatives market.
Over the past 24 hours, a massive $800 million in open interest was removed from Bitcoin. For Cardano, the number was $35 million. Importantly, these figures weren’t the result of liquidations. Instead, it suggests that many traders, especially those holding short positions, voluntarily closed them. According to LuckSide, this is often a sign that short sellers are nervous about potential upside movement.
He also highlighted the current long-to-short ratios. For Bitcoin, the market has now balanced out, with roughly equal numbers of long and short positions. But Cardano still shows a heavy skew towards shorts, with a 6.5:1 imbalance. This could be a recipe for a short squeeze, which might trigger a sudden and sharp price rally if market conditions align.
ADA has yet to outperform Bitcoin over the last 90 days. It’s still down from its mid-February levels, when the market experienced a recovery following a major flash crash. However, LuckSide noted that ADA’s current price and volume patterns are surprisingly similar to what it showed during the 2020 accumulation phase, just before a major bull run. He even compared the setup to the 2016-2017 cycle, pointing out how closely ADA seems to be following historical trends.
The video ends with a reminder to viewers not to rely solely on charts. With so many variables at play, it’s the broader context that gives the full picture. Despite ADA’s recent price dip, the setup could favor a big move – especially if shorts continue to back off and fresh volume enters the market.
Whether ADA leads the next crypto rally or not, all eyes will be on how these patterns evolve in the coming days.
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