Cardano (ADA) is facing challenges amid market uncertainty but has recently successfully retested its key support level.
Current Price Momentum
At press time, ADA is trading near $0.67 with a modest price surge of over 0.50%, previously at 4.5%. However, due to uncertainty, the token lost its gains. Meanwhile, 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 technical analysis, ADA recently visited a key support level of $0.63, known for strong price reversals or rebounds. This level usually sees strong buying pressure, encouraging upside rallies. Currently, a Doji candle has formed on the daily timeframe, hinting at potential upward momentum. If ADA holds above $0.63, it could potentially rise by 25% to reach $0.85. However, given the current non-bullish market sentiment, we might see price consolidation between $0.63-$0.70 in the near days.
Key Liquidation Levels
The bearish trend explains why traders are betting on short positions, as reported by the on-chain analytics firm Coinglass. Data revealed that $0.662 and $0.70 are levels where intraday traders are highly leveraged, with $5.50 million in long positions and $13.60 million in short positions in the past 24 hours. This data shows the current dominance of bears, pushing the price lower.
Despite successfully retesting its support, Cardano (ADA) continues to face challenges due to unpredictable market conditions.
