ADA Price Retests Crucial Support, Repeating Previous Move

It seems like ADA, Cardano's native token, has successfully retested its crucial support and is repeating its previous move.

Cardano’s native token, ADA, appears to have retested its crucial support and is continuing its previous move. However, due to market uncertainty, the asset is struggling to gain momentum and lost its gains.

Current Price Momentum

At press time, ADA is changing hands at $0.67 and has seen a slight price uptick of over 0.50%, previously 4.5%. But, due to uncertainty, the token lost its gains.

Moreover, during the same period, the asset’s trading volume dropped by 20%, suggesting lower participation from traders and investors.

Cardano (ADA) Technical Analysis

As seen on the latest technical analysis from Benzinga Pro, ADA recently touched a key support at $0.63, which is known for its strong price reversals or rebounds. Whenever ADA reached this level, it encountered strong buying pressure, leading to an upside rally. This time, the asset completed a Doji candle at the support on the daily chart, suggesting a potential reversal in momentum.

If ADA stays above the $0.63 level, there is a chance it could surge by 25% to reach $0.85. However, with the market struggling to stay afloat, it would be surprising to see such a significant move. Instead, we might see price consolidation between the $0.63 and $0.70 ranges over the next few days.

In addition to this, ADA’s 200-day Exponential Moving Average (EMA) is above its prevailing price, signifying that the asset is in a bearish trend and has weak price action.

Key Liquidation Levels

This bearish trend explains why traders are strongly betting on short positions, as per on-chain analytics firm Coinglass.

The data revealed that $0.662 and $0.70 are the levels where intraday traders are highly over-leveraged, having built $5.50 million and $13.60 million worth of long and short positions, respectively, in the past 24 hours. This bit of information shows how bears are currently dominating the asset and pushing its price lower.