- Cardano (ADA) is nearing a breakout from a falling wedge, trading just below the key $0.80 resistance.
- Bullish sentiment intensifies with ADA’s long-to-short ratio reaching its highest since July 9.
- $8.57 million in short positions risk liquidation if ADA hits $0.797.
- A close above $0.8018 (50-EMA) could trigger a rally toward $0.8435.
Cardano Builds Bullish Momentum: Wedge Breakout in Sight
Cardano (ADA) continues to climb, regaining bullish traction within a falling wedge pattern. At press time, ADA is up nearly 3%, trading around $0.79, and inching closer to the psychological $0.80 mark. If momentum continues, ADA could soon breach the wedge’s resistance, leading to a significant rally.
Also Read: Cardano (ADA) Skyrockets 111% in Volume Amid Bullish Takeover, Eyes $0.65 Breakout
On-chain and derivatives data further support the bullish outlook. According to CoinGlass, the ADA long-to-short ratio surged to 1.0421, with 51.03% of traders holding long positions, a sharp rise from 47.98% the day before. This reflects a rising tide of optimism among ADA holders and traders alike.
Short Sellers at Risk: $8.57 Million in Liquidations Loom
The ADA liquidation map shows a large cluster of short positions worth $8.57 million built around the $0.797 level. If ADA pushes just slightly higher, these shorts may be wiped out, triggering a short squeeze and reinforcing the bullish trend.
Historically, such liquidations can accelerate upward price movements as short sellers are forced to buy back at higher prices.
Cardano Technical Analysis: ADA Tests Resistance as Indicators Turn Positive
Also Read: Cardano (ADA) Is Breaking Through Key Resistance Level, Analyst Sets Price Target
ADA’s 4-hour chart reveals a consistent recovery with four consecutive bullish candles, bouncing off the S1 pivot level at $0.7498. The price is currently testing the 100-period EMA at $0.7886, while bulls aim for a breakout above the wedge’s overhead resistance.
A breakout would be confirmed if ADA closes above the 50-period EMA at $0.8018, which coincides with the wedge’s upper trendline. If this happens, the next target lies at the pivot level of $0.8435.
- MACD has flipped bullish, with the signal line crossover and green histogram bars reappearing.
- RSI is at 47 and rising, suggesting ADA still has room to run before becoming overbought.
Potential Pullback? Watch the EMAs
Despite the bullish momentum, failure to break above the 100-EMA could lead to a short-term retracement back to the S1 pivot support at $0.7498. This would still keep ADA within the wedge structure, but a decisive rejection here could weaken the bullish thesis.
