Cardano Bears Take Control: $943K Liquidated as ADA Eyes $0.72

Andrew Chen
Cardano (ADA)

  • ADA rejected at $0.84, signaling a possible deeper dip.
  • $943K in long positions liquidated amid rising bearish sentiment.
  • Cardano’s ecosystem grows, with a 30% rise in stablecoin market cap

Cardano (ADA) is once again facing resistance after a promising breakout from a falling channel pattern. The altcoin surged 15% to test the $0.84 level but was quickly pushed back, forming a bearish engulfing candle that signals a potential deeper pullback.

Currently, Cardano is trading just above $0.80, posting a modest 2.6% gain in the past 24 hours. However, the rejection at the $0.84 resistance zone has raised concerns among traders. On the 4-hour chart, ADA shows a double-bottom reversal from $0.7225, yet the failure to hold above the 50% Fibonacci level at $0.8253 suggests waning bullish momentum.

Technical indicators paint a mixed picture. While the MACD remains in positive territory, the Relative Strength Index (RSI) has sharply declined from overbought levels, indicating fading buying pressure. Immediate support lies near $0.7745, with stronger support expected around $0.7225—a level that previously triggered the current rally.

The market reaction has been swift. In just four hours, nearly $943,000 worth of bullish ADA positions were liquidated, underscoring the impact of the price rejection. The funding rate has also dropped significantly, from 0.0212% to 0.0107%, reflecting cooling optimism among derivative traders.

Despite short-term volatility, Cardano’s network fundamentals remain strong. According to Messari, the stablecoin market cap on Cardano has surged 30% quarter-on-quarter, alongside a 13% increase in DeFi diversity and a 5% rise in the network’s treasury balance. These metrics highlight sustained development activity and growing ecosystem support.

Open interest in ADA derivatives has held steady at $972 million, even rising by 3.76% in the last 24 hours, signaling continued trader engagement. While the near-term outlook points to a possible dip toward $0.72, long-term fundamentals could provide a safety net.

Also Read: Cardano Just Pulled Off a Bridgeless BTC Transfer — Here’s What It Means for DeFi

In conclusion, Cardano’s rejection at $0.84 may lead to further downside pressure, but strong network growth and steady trading interest suggest ADA remains a key asset to watch in the ongoing crypto market cycle.

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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