It seems like ADA, Cardano’s native token, has successfully retested its crucial support and is repeating its previous move. However, due to market uncertainty, the asset is facing difficulties and struggling to gain momentum.
Current Price Momentum
At press time, ADA is trading near $0.67 and has experienced a modest price surge of over 0.50%, which was previously 4.5%. However, due to uncertainty, the token lost its gains.
Meanwhile, during the same period, the asset’s trading volume dropped by 20%, indicating lower participation from traders and investors compared to the previous day.
Cardano (ADA) Technical Analysis and Price Prediction
According to expert technical analysis, ADA recently visited a key support level of $0.63, which has a history of strong price reversals or rebounds. ADA has always seen strong buying pressure at this level, leading to an upside rally. This time, the asset has formed a Doji candle at the support level on the daily timeframe, hinting at potential upside momentum.
Based on recent price action, if ADA remains above the $0.63 level, there is a strong possibility it could soar by 25% to reach $0.85. However, since the current market isn’t bullish, it would be difficult to see such an upward move. Instead, we may see price consolidation between the $0.63 and $0.70 levels over the next few days.
In addition to this, ADA’s 200-day Exponential Moving Average (EMA) is above its current price, indicating that the asset is in a bearish trend and has weak price action.
Key Liquidation Levels
This bearish trend explains why traders are strongly betting on short positions, as reported by the on-chain analytics firm Coinglass.
Data revealed that $0.662 and $0.70 are the levels where intraday traders are highly over-leveraged, having built $5.50 million and $13.60 million worth of long and short positions, respectively, in the past 24 hours. This data indicates how bears are currently dominating the asset and pushing its price lower.
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