- ADA surges 114% but faces strong rejection at $0.70 resistance level.
- Cardano’s on-chain metrics suggested a short-term cool-down, despite bullish liquidation sentiment.
As a seasoned crypto investor with more than a few battle scars to show for it, I’ve learned to take market swings like ADA’s recent surge and pullback in stride. The 114% jump was indeed impressive, but the swift rejection at $0.70 reminded me once again of the old adage: “The markets can be brutally cruel, but never boring.
For the past week, Cardano (ADA) has been a standout, surging over 114% until it hit a notable barrier that halted its upward momentum.
Unexpectedly strong surge took numerous traders by surprise, causing the price to leap from its stable range near $0.42 and test the crucial $0.70 resistance level instead.
Nevertheless, the momentum seems to have lessened, as ADA experienced a 14% downtrend over the past 48 hours. This substantial drop suggests that traders are cashing out at elevated prices, having profited from the recent surge.
ADA’s potential consolidation
Based on AMBCrypto’s interpretation of IntoTheBlock’s findings, the outlook for Cardano (ADA) over the short term showed some contrasting signs.
Yesterday saw a 24% drop in significant transactions involving the altcoin, indicating a possible decrease in institutional involvement following a substantial price surge.
In the near term, it’s possible that ADA’s major players are adopting a wait-and-see approach, evaluating market conditions and price movements at critical resistance points.
In the same vein, there was a decrease of 25% in the number of active addresses, suggesting a minor reduction in the involvement of the Cardano network’s participants.
It’s often suggested that a cooling-off phase might be required prior to the next major shift in the altcoin’s movement based on these measurements.
THIS suggests strong support
Regardless of the current dip, information from Coinglass suggests a possibly optimistic future for ADA. The significant amount of ADA, approximately $1.96 million, was found to be locked in liquidation at the level of $0.65.
In simpler terms, this could serve as a strong base for numerous orders, which may help mitigate additional price drops.
Remain cautiously optimistic!
Looking at its technical aspects, the price movement of ADA has burst free from a prolonged descending triangle formation, often interpreted as a positive signal for potential price increases.
Read Cardano’s [ADA] Price Prediction 2024–2025
The refusal at $0.70 hinted at an immediate barrier, but the development of higher bottoms implied that the market structure remained generally optimistic or bullish.
If ADA manages to hold its current levels, there’s a possibility that another effort to breach the $0.70 mark may arise soon.
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2024-11-12 18:15