Cardano Gets a Boost on Coinbase—But Traders Are Betting Against ADA

Cardanos 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 Cardanos 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, ADAs daily trading volume stands at $649 million.

ADA Price/Volume. Source: Santiment

When an assets 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, ADAs long/short ratio in the futures market has tilted heavily in favor of shorts. At press time, this is at 0.96.

ADA Long/Short Ratio. Source: Coinglass

This ratio compares the number of long and short positions in an assets 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 coins 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, ADAs price could extend its decline to $0.511.

ADA Price Analysis. Source: TradingView

However, the coins value could rally toward $0.642 if demand climbs.