Cardano (ADA), after experiencing a notable price drop yesterday, is recovering as the asset has successfully retested the crucial support area of $0.70. Despite the ongoing recovery, the asset has still recorded a price drop of over 8% in the past 24 hours and is currently trading near $0.744.
Cardanon (ADA) Technical Analysis and Upcoming Levels
According to expert technical analysis, ADA is poised for a potential price surge in the coming days. After successfully retesting the crucial support level, the asset has begun moving upward.
Based on recent price action and historical momentum, if ADA holds this support level, there is a strong possibility it could soar by 10% to reach the $0.81 level in the upcoming hours.
Currently, the asset is facing resistance from the 200 Exponential Moving Average (EMA) on the four-hour time frame. If it breaches this level, ADA could reach the predicted target soon.
Liquidation Levels & Market Impact
With this ongoing price recovery, traders’ short positions worth $6.67 million are on the verge of liquidation as the price continues to recover.
As of now, the major liquidation levels are near $0.728 on the lower side and $0.754 on the upper side, as intraday traders are over-leveraged at these levels. However, these over-leveraged positions will be liquidated if the asset’s price moves in either direction.
$25 Million ADA Outflow Signals Accumulation
Besides traders’ over-leveraged positions, long-term holders seem to be taking advantage of the current market sentiment as they continue accumulating tokens, according to on-chain analytics firm Coinglass.
Data from spot inflow/outflow reveals that, in the past 48 hours, exchanges have witnessed an outflow of a significant $25 million worth of ADA tokens.
These substantial outflows from exchanges indicate potential accumulation, which could create a buying opportunity and further drive an upside rally. With strong bullish participation from traders and investors, ADA’s 24-hour trading volume has surged by 55%, reflecting increased market activity.
When combining these on-chain metrics with technical analysis, it appears that bulls are back to support ADA, potentially driving further upside momentum.
