ADA Price Prediction: Cardano (ADA) Successfully Retested Its Crucial Support and Is Repeating Its Previous Move

It seems like ADA, Cardano's native token, has successfully retested its crucial support and is repeating its previous move.

Cardano's native token, ADA, appears to have retested its crucial support and is showing signs of repeating its previous move. However, due to market uncertainty, the asset is struggling to gain momentum.

Current Price Momentum

At press time, ADA is changing hands at $0.67 and shows a slight price uptick of over 0.50%, previously 4.5%. But due to the uncertainty, the token lost its gains.

Moreover, during the same period, the asset’s trading volume dropped by 20%, indicating lower participation from traders and investors.

Cardano (ADA) Technical Analysis and Price Prediction

As seen on the expert technical analysis, ADA recently touched a key support level of $0.63, which has a history of strong price reversals or rebounds. ADA has always seen strong buying pressure at this level, leading to an upside rally. This time, the asset has formed a Doji candle at the support level on the daily timeframe, hinting at potential upside momentum.

From the recent price action, if ADA stays above the $0.63 level, there is a great chance it could surge by 25% to reach $0.85. However, since the present market isn’t bullish, it would be difficult to see such an upward move. Rather, we may witness price consolidation between the $0.63 and $0.70 ranges over the next few days.

In addition to this, ADA’s 200-day Exponential Moving Average (EMA) is above its prevailing price, signifying that the asset is in a bearish trend and has weak price action.

Key Liquidation Levels

This bearish trend explains why traders are strongly betting on short positions, as per the on-chain analytics firm Coinglass.

The data disclosed that $0.662 and $0.70 are the levels where intraday traders are highly over-leveraged, having built $5.50 million and $13.60 million worth of long and short positions, respectively, in the past 24 hours. This bit of data shows how bears are currently dominating the asset and pushing its price lower.