Cardano (ADA) At Crucial Support Level, Could Fall 12% to $0.28 Level

ADA is at a crucial support level, if it fails to hold this level it could fall 12% to the $0.28 level. ADA’s major liquidation levels are at $0.302

Cardano (ADA) has shown limited gains in the ongoing market recovery as traders focus on the top assets like Bitcoin (BTC) and Ethereum (ETH). While most of the top 10 assets by market capitalization have experienced a significant upside move, ADA has remained dull.

However, ADA has shown a decent performance, but its open interest has dropped by 8% to signal lower interest from traders and investors, an on-chain analytic firm CoinGlass noted.

At number 10 with a market capitalization of over $11.63 billion, ADA is currently trading near $0.324 and has experienced a price drop of 2% in the last 24 hours. Meanwhile, ADA’s trading volume also dropped by 37% during the same period.

ADA price could fall 12% to $0.32 level

According to expert technical analysis, ADA is seen trading at a crucial support $0.321 level in a 4-hour time frame. If ADA gives a breakdown of this level and closes a 4-hour candle below $0.319, there is a high chance it could fall another 12% to the $0.28 level in the coming hours.

On the other hand, if sentiment changes and ADA price soars and gives a 4-hour candle closing above $0.35, there is a high chance it could rally 20% to the $0.41 level in the coming days. However, this will potentially happen following the implementation of the hard fork.

ADA’s major liquidation levels

As of now, the ADA’s major liquidation levels are near $0.302 on the lower side and $0.341 on the upper side. If the market sentiment remains unchanged and the price falls to the $0.302 level, nearly $1.85 million of the long position will be liquidated. Conversely, if sentiment changes and ADA soars to the $0.341 level, nearly $4.25 million of short positions will be liquidated.

This large amount of liquidation in short positions compared to large positions signals bearishness in ADA.