Cardano (ADA) trades sideways; a breakout above $0.756 may trigger a 12% surge

Cardano (ADA) price remained unchanged in the past 24 hours, while major cryptocurrencies experienced massive upside momentum. This is due to its prolonged consolidation

Traders are anticipating a breakout from the prolonged consolidation phase of Cardano (ADA) price, which has been closely observed by technical analysts.

Over the past week, Cardano’s price has remained in a tight range, moving minimally despite major cryptocurrencies experiencing triple-digit gains. This sideways movement is due to the prolonged consolidation of ADA price between the $0.695 and $0.75 levels.

Technical Analysis Of Cardano (ADA)

Looking at the ongoing price momentum, it is clear that ADA will see a major rally only if it breaks out of this consolidation, otherwise, the price may continue to experience minor fluctuations.

As seen in the chart above, if ADA manages to break the upper boundary of the consolidation and close a daily candle above $0.756 then there is a strong possibility that the price may surge over 12%, pushing it to reach the $0.85 level.

However, if the lower boundary of the consolidation is breached and a daily candle closes below $0.69 then it may drop to $0.65 in the coming days.

Furthermore, the asset is encountering resistance from the 200 Exponential Moving Average (EMA) on the daily timeframe.

At press time, ADA is trading at $2.42, showing a minor decline of 0.50% in the past 24 hours. But, during the same period, the asset witnessed a 40% jump in trading volume, indicating increased participation from traders compared to the previous day.

Major Liquidation Levels

Despite the ongoing uncertainty and unclear price action, traders appear bullish and are heavily betting on the long side, according to the on-chain analytics firm Coinglass.

Data reveals that traders are currently over-leveraged at $0.711 on the lower side and $0.742 on the upper side. Over the past 24 hours, they have built $17 million worth of long positions and $3 million worth of short positions, partially confirming that ADA’s price is poised for massive upside momentum.

Meanwhile, whales and long-term holders seem to be continuously accumulating the asset despite ongoing market volatility, which could also play a key role in driving a potential price reversal.