Cardano (ADA) recently saw an impressive 4% recovery. However, the price is moving toward retesting the ascending trendline support amid bearish market sentiment.
Cardano (ADA) Current Momentum
As the ADA price nears the support level, it becomes crucial to see whether the asset will hold this level. If the market does not experience a massive sell-off, the price may stabilize. Otherwise, increased selling pressure could continue the current trend until sentiment shifts.
ADA Technical Analysis and Upcoming Levels
According to expert technical analysis, ADA retains its upside potential as long as it trades above the ascending trendline or the $0.73 mark. On the daily and four-hour time frames, ADA appears to be forming a bullish 'cup-and-handle' pattern, reinforcing its bullish outlook.
Current Price Momentum and Over-Leveraged Levels
Examining current market sentiment, intraday traders are heavily leveraged at the $0.76 level on the long side, with $2.23 million worth of long positions. Meanwhile, the $0.785 level is another leveraged zone where traders have built $2 million worth of short positions.
ADA is currently trading near $0.77 and has experienced a modest 0.50% price surge in the past 24 hours. However, during the same period, its trading volume dropped by 50%, indicating reduced participation by traders and investors.
