The sharp drop implies that traders have been driven out or have closed positions due to increased volatility, flushing out speculative exposure. By removing extra leverage from the system, these resets frequently signal a move away from overheated situations.
According to the expert, ADA open interest fell from about $1.6 billion to $334 million, but a trend is subtly unfolding underneath. Data shows that major players are aggressively closing their ADA positions. However, the key insight here lies in the direction that the open interest is now concentrated.
As seen on the chart, Binance currently holds just 22% of Cardano’s open interest, while Gateio is leading the charge with about 31% dominance. Although it may seem less impulsive, the expert stated that the shift is more important than most people in the sector realize.
ADA In An Accumulation RangeAfter a steep drop, Cardano’s price is sitting inside a long-term accumulation range. The structure is akin to the end of a corrective phase and preparation for a new cycle, and a break from the long-term downtrend supports a bullish continuation setup.
