Cardano (ADA) is recovering after a significant drop, having tested the crucial support level of $0.70.
Technical Analysis and Potential Growth Levels
According to expert technical analysis, ADA is poised for a potential price surge in the coming days. After successfully retesting the support level, the asset has begun an upward trajectory. If ADA holds this support level, there is a strong possibility it could soar by 10% to reach $0.81 in upcoming hours.
Liquidation Levels and Market Impact
With the ongoing price recovery, traders’ short positions worth $6.67 million are at risk of liquidation. The major liquidation levels are near $0.728 on the lower side and $0.754 on the upper side, where intraday traders are over-leveraged. These positions may be liquidated if the asset’s price moves in either direction.
$25 Million ADA Outflow Signals Accumulation
Besides the liquidation of over-leveraged positions, long-term holders appear to be taking advantage of the current market sentiment by accumulating tokens. Recent data shows that, in the past 48 hours, exchanges have witnessed an outflow of $25 million worth of ADA. These substantial outflows could indicate potential accumulation, creating a buying opportunity and possibly further market rally.
Combining technical analysis with on-chain metrics, it seems that bulls are firmly supporting ADA, potentially driving further upward momentum.
