- Cardano (ADA) is hovering around $0.72, facing a 2% dip as traders anticipate a breakout or breakdown from its current symmetrical triangle pattern.
- Cardano’s price direction hinges on breaking the $0.74 resistance for a potential 13% surge or falling below $0.70, risking a drop to $0.65.
Cardano’s native token, ADA, is facing a sharp price decline amid heightened market uncertainty, mirroring the broader cryptocurrency downturn. Recent volatility has rattled investor confidence, leading to millions of dollars in liquidations across both long and short positions. With ADA’s price action at a critical juncture, traders are keenly watching for the next major move.
Current Price Momentum
ADA is currently trading near $0.72, reflecting a 2% decline in the past 24 hours. However, the asset’s trading volume has dropped by 25%, indicating reduced market participation. This dip suggests that traders are either waiting for confirmation of the next move or exiting positions amid uncertainty.
Technical Analysis: Will ADA Break Out?
ADA is forming a symmetrical triangle pattern on the four-hour timeframe, a classic setup that signals an impending breakout or breakdown.
- If ADA breaks above $0.74 and closes a four-hour candle above this level, a 13% surge to $0.83 could be on the horizon.
- However, a break below $0.70 could send the price spiraling down to a key support level at $0.65.
Market analysts suggest that the next few trading sessions will be crucial in determining Cardano short-term price direction.
Major Liquidation Areas: Bears vs. Bulls
On-chain data from Coinglass shows that traders are heavily positioned at key levels:
- $0.71 holds $2.61 million in long positions, making it a crucial battleground for bulls.
- $0.73 is another critical level, with $4.20 million in short positions, indicating strong bearish sentiment.
With such high leverage in play, any sharp movement could trigger a cascade of liquidations, amplifying ADA’s next big price move.
What’s Next for ADA?
ADA’s price trajectory hinges on its ability to break key resistance or hold above crucial support. Traders should brace for heightened volatility as the symmetrical triangle pattern nears completion. Will ADA reclaim higher ground, or is a deeper correction in store? The next breakout will provide the answer.
