Recent fluctuations in Cardano's price have raised concerns among traders. Over the past 48 hours, the cryptocurrency market has experienced significant sell-offs, leading to a dramatic 25% decline in ADA’s value, bringing the price down to $0.79. However, it seems that major players are seizing the opportunity to accumulate more ADA at these lower price points, indicating a potential rebound if key support levels are maintained.
Significant Losses in ADA Futures Market
The steep drop in ADA’s price has put traders in the futures market in a difficult position. According to data from on-chain analytics firm Coinglass, ADA investors lost a total of $43.9 million in the last 24 hours. Of this amount, $32.2 million came from long positions, while $11.71 million was from short positions. The high volatility in price has led to significant liquidations, particularly affecting those holding long positions.
Crucial Technical Levels and Recovery Expectations
Currently, Cardano has found strong support at the $0.80 level. Experts believe that if this level holds, it could lead to a significant upward movement, as the price previously broke through this threshold before rapidly increasing. If ADA can maintain the $0.80 level without closing daily candles below it, it may experience a potential rise of up to 35%, possibly reaching $1.14. However, if this support level is breached, ADA could decline further to $0.65, reflecting a 20% drop. In addition to technical analyses, on-chain data reveals that major investors are continuing to accumulate ADA coins. According to Coinglass, approximately $110 million worth of ADA has been withdrawn from exchanges in the last 48 hours. This trend suggests that investors hold a positive long-term outlook for the altcoin.
Overall, the current situation in the Cardano market reflects the impact of market volatility on cryptocurrency values. Despite the sharp decline, ongoing accumulation by major investors indicates faith in the long-term potential of ADA. Traders should closely monitor technical levels to assess possible recovery prospects.
