Cardano (ADA) is showing signs of recovery after experiencing a significant price drop yesterday. The asset successfully retested the crucial support level at $0.70 and has since rebounded, trading near $0.744 at the time of writing. Despite this positive movement, ADA still reflects an 8% decline in the past 24 hours.
Technical Analysis: ADA’s Next Move
According to market analysts, ADA’s ability to hold the $0.70 support level could fuel a price surge in the coming days. Historical momentum suggests that if the asset maintains this level, it could climb by 10%, potentially reaching the $0.81 mark in the next few hours.
Currently, ADA faces resistance at the 200 Exponential Moving Average (EMA) on the four-hour chart. A decisive breakout above this level would further support the bullish case and pave the way for a strong upward move.
Liquidation Levels and Market Impact
As ADA continues its recovery, traders holding short positions worth approximately $6.67 million are at risk of liquidation. The major liquidation levels are currently positioned at $0.728 on the lower side and $0.754 on the upper side. If the price moves significantly in either direction, these over-leveraged positions could be wiped out, causing increased volatility.
$25 Million ADA Outflow Signals Accumulation
In addition to short-term price movements, on-chain data suggests that long-term holders are taking advantage of the current market conditions. According to analytics firm Coinglass, exchanges have recorded a $25 million outflow of ADA in the past 48 hours.
Such significant exchange outflows typically indicate accumulation by investors, suggesting that market participants are positioning themselves for an upside rally. With bullish sentiment strengthening, ADA’s 24-hour trading volume has surged by 55%, further reinforcing market activity.
Also Read: Cardano Founder Backs XRP as a ‘Global Standard’—Here’s Why
Given the combination of strong technical support, increased trading activity, and notable accumulation, ADA appears poised for further gains. If bulls manage to push the price above the 200 EMA resistance, the asset could see a rapid climb toward $0.81 and beyond. However, traders should remain cautious of potential market fluctuations and liquidation risks.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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