As the broader cryptocurrency market experiences a recovery, Cardano (ADA) remains stuck below a crucial resistance level. As of March 1, 2025, ADA has posted a modest 2% gain, currently trading near $0.63. The asset continues to fluctuate within a tight range between $0.625 and $0.64, struggling to break higher.
Cardano (ADA) Short-Term Price Analysis
Despite showing some upside momentum, ADA remains below its key resistance of $0.65. Over the past 24 hours, the price attempted to rally but failed to sustain traction, keeping the asset within a bearish zone. Analysts suggest that a confirmed breakout above $0.6425, with four consecutive closing candles above this level, could trigger a 5.50% surge, pushing ADA toward $0.67.
Conversely, if ADA fails to breach the upper consolidation boundary and closes a daily candle below $0.62, a potential 7% drop to $0.58 could be on the horizon, with further downside risks looming.
Bullish On-Chain Metrics Signal Potential Reversal
Despite the price stagnation, on-chain data suggests that bulls may be regaining control. Coinglass analytics reveal increased bullish activity among traders and investors, indicating growing confidence in ADA’s upside potential.
Over-Leveraged Levels Could Influence Price Movements
Data from Coinglass highlights significant leverage in ADA positions. Traders holding long positions are over-leveraged at $0.618, with $5.90 million in exposure. Meanwhile, short traders have built $3.67 million in positions around $0.645. These leverage levels suggest heightened volatility ahead, as liquidations could trigger sharp price swings.
Further supporting the bullish case, ADA has witnessed significant exchange outflows, with $14.65 million worth of tokens moving off trading platforms. This trend suggests accumulation by long-term holders, which often precedes upward price action.
Also Read: Cardano (ADA) Eyes 21% Surge – Will Bulls Hold $0.65 Support or Face a Drop to $0.45?
While ADA struggles to reclaim the $0.65 resistance, rising bullish sentiment and strong on-chain metrics indicate potential for an upward breakout. Traders should watch key support and resistance levels closely, as a decisive move could set the stage for the next significant price action.
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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