Cardano (ADA) Price Trades at $0.6797 as the Crypto Market Witnesses a Bearish Sunday

Over the weekend, the ADA price dropped by 3.34% from $0.69 to a closing price of $0.6764. Despite the downfall, Cardano holds its ground above a crucial dynamic support, acting as the last line of defense.

The Cardano price trades at $0.6797 on Sunday’s trading session, presenting a bleak outlook for crypto traders.

The crypto market slid further into bearish territory over the weekend, with the ADA price dropping by 3.34% from $0.69 to a closing price of $0.6764.

Despite the downfall, Cardano holds its ground above a crucial dynamic support, acting as the last line of defense.

However, the token is at a crucial crossroads as indicated by the heightened bullish activity of ADA derivative traders, which reflects the increased confidence in the underlying token.

Will this growing confidence help the ADA price launch to $1, or is a pullback to $0.55 inevitable?

Cardano Price Holds Key 50D SMA Support Amid Market Downturn

The Cardano price ranges between the decreasing 100 and 50-day simple moving average lines. Moving within the bearish trend, the ADA price is now testing the lower boundary, presenting a threat of a breakdown.

Yet, the lower price is being rejected, and an intraday recovery of 0.50% teasles a bullish reversal. Over the past seven days, the ADA price slid nearly 4%, failing to sustain above the $0.70 threshold.

Moreover, the increased selling activity close to the 23.60% Fibonacci level at $0.76 indicates the strong bearish influence of the overhead supply zone. This increased selling pressure has led to the MACD and signal lines merging.

Currently, both average lines are close to 0.00811, hinting at a potential bearish crossover. This will trigger the sell signal, increasing the possibility of a breakdown value.

From the previous swing low, the breakdown rally could retest the $0.5528 if the $0.60 psychological support breaks down. But if the broader market recovers and the bullish sentiment for Cardano survives, then the uptrend will likely pierce the crucial overhead resistance at $0.7673.

This will increase the possibility of Cardano reaching $1, which is the 50% trend-based Fibonacci level. Hence, for price action traders waiting for a bull run to $1, the $0.7673 breakout will be the initial trigger.

Massive Surge in Long Positions Teases Bullish Reversal

Despite the pullback seen over the weekend, the bullish confidence in the Cardano price is growing in the derivatives market. According to the Coinglass data, the ADA Long/Short Ratio Chart showcases a massive increase in long positions.

Over the past four hours, the sudden surge in long positions has reached 70% of all open positions, propelling the long-to-short ratio to 2.40. This magnitude of change in such a short time period highlights the strong bullish confidence in the Cardano price despite the price pullback.

Furthermore, the liquidation map of the ADA-USDT trading pair over Binance showcases the possibility of massive liquidation if the uptrend continues. According to the data, the uptrend to $0.70 close to the crucial overhead supply zone will result in a cumulative short liquidation of $4.44 million.

This will consist of $169,000 in 25x leverage and $779,000 in 50x leverage. On the flip side, a potential pullback to $0.66 will shake out more than $2.33 million in long liquidations.

AI Testnet Hype Fails to Sustain Rally

Over the weekend, the Cardano price touched the $0.70 threshold with the announcement of AI-powered network testing by Charles Hoskinson. The announcement unveiled the AI-powered test network for Cardano’s Leios protocol to dramatically increase the transaction throughput.

It will prepare the network for post-quantum cryptographic standards and address the scalability issues. However, the news failed to create a sustained bull run in ADA prices. Still, the innovation strengthens Cardano’s long-term outlook as a future-ready blockchain.

Frequently Asked Questions (FAQs)

1. What is the current market price of Cardano?

The current market price of Cardano (ADA) is $0.6797.

2. Will ADA price break below 50-day SMA?

The ADA price is testing the 50-day SMA, and a breakdown could occur if the $0.60 psychological support breaks. However, the lower price is being rejected, and an intraday recovery of 0.50% suggests a bullish reversal.

3. Are traders turning bearish on Cardano?

Despite the price pullback, traders are showing increased confidence in ADA, with a massive surge in long positions in the derivatives market. The long-to-short ratio has reached 2.40, indicating strong