Cardano (ADA) has recently caught the attention of investors and traders as its market sentiment is undergoing a significant transformation. After experiencing a price decline of nearly 20%, the mood around ADA is shifting from a bearish to a bullish outlook. This positive change is primarily attributed to its promising price action pattern. Historically, whenever ADA’s price dips to its current level, it tends to attract buying pressure, sparking an upward rally. This pattern has been consistent since July 2024.
ADA’s Perfect Buying Level
When examining ADA’s daily chart, it becomes apparent that this is the fourth instance in the past four months where the price has reached a crucial support level, marking it as a potential buying point. Presently, ADA is hovering around $0.333, having recorded a 2.25% price drop in the last 24 hours. Interestingly, during this same period, trading volume surged by 26%. This uptick in trading activity reflects increased interest from traders and investors eager to capitalize on the current buying level.
ADA Technical Analysis and Upcoming Levels
Expert technical analysis reveals a bullish stance for ADA, with the asset currently resting at a robust support level of $0.31. This level has consistently offered significant support for ADA since July 2024. Notably, when ADA hits this level, it often experiences a price surge exceeding 20%. Based on recent price movements, there is a strong likelihood that ADA could witness a substantial price increase, potentially reaching the $0.40 mark in the near future.
Despite this optimistic forecast, ADA’s daily chart has also formed a descending triangle pattern. Should ADA manage to rise by 20%, this pattern will be broken, paving the way for a remarkable upward rally towards the $0.45 level.
Major Liquidation Levels
Currently, the major liquidation levels are positioned at $0.323 on the downside and $0.337 on the upside, as observed by on-chain analytics firm Coinglass. Traders appear heavily leveraged at these key levels. If the bullish sentiment persists and the price ascends to $0.337, it will result in the liquidation of approximately $1.53 million worth of short positions. Conversely, if the sentiment shifts and the price falls to $0.323, around $1.99 million worth of long positions will be liquidated.
Integrating the data from liquidation levels with technical analysis suggests that bulls currently have the upper hand in the market. This dominance indicates a potential upward rally and presents a lucrative buying opportunity for investors looking to capitalize on ADA’s price movements.
In conclusion, Cardano (ADA) is witnessing a pivotal moment in its market trajectory. As sentiment shifts towards a bullish outlook, investors and traders should keep a close watch on ADA’s price action patterns, support levels, and liquidation data to make informed investment decisions.
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