Cardano (ADA) price remained stable throughout the week. However, given the current market sentiment and investors’ outlook, this stability may soon change, potentially leading to a massive upside rally.
Indicator Reveal ADA Bullish Sentiment Reach 4-Month High
Today, March 20, 2025, on-chain analytics firm Santiment posted on X (formerly Twitter) that specific altcoins like ADA are experiencing the highest positive sentiment on social media. This is seen as a bullish sign and could attract more investors and traders.
However, the post on X also noted that this positive sentiment follows the United States Securities and Exchange Commission (SEC) classifying ADA’s use case as “smart contracts for government services.” As a result, bullish sentiment for ADA has reached a four-month high.
Cardano (ADA) Price Action and Upcoming Levels
According to expert technical analysis, ADA has been consolidating within a narrow range between $0.69 and $0.75 for the past few weeks and is now on the verge of a breakout.
Based on recent price action and historical patterns, if the asset breaks out of this consolidation and closes a daily candle above the $0.76 level, there is a strong possibility it could initially surge by 12%, reaching $0.85 in the coming days.
Traders and investors should note that $0.75 is a key level, as it aligns with the 200 Exponential Moving Average (EMA) on the daily timeframe, acting as a significant resistance for the asset.
ADAs’ Over-Leveraged Levels
Despite the mixed price action, traders appear bullish as they are betting on the long side, according to on-chain analytics firm Coinglass.
Data reveals that traders are currently over-leveraged at $0.715 on the lower side, holding $11 million worth of long positions. Meanwhile, $0.75 is another over-leveraged level where traders betting on the short side hold $7.70 million worth of short positions.
These over-leveraged levels and the millions worth of short and long positions hint that bulls are currently dominating, which could support the asset in rallying in the coming days.
