Cardano’s price has failed to sustain any meaningful recovery, invalidating the previously anticipated bullish pattern. Despite oversold conditions suggesting a potential reversal, ADA remains under pressure.
Market conditions indicate that an immediate rebound is uncertain, with sellers maintaining control. Investors remain cautious as Cardano struggles to reclaim key resistance levels.
Cardano Traders Are Prone To Losses
Cardano’s liquidation map highlights over $4.66 million worth of ADA at risk of liquidation if the price rebounds toward the $0.77 resistance. This suggests that bearish traders have aggressively bet on further declines. Their dominance has driven the funding rate negative, indicating strong short interest and hesitation among bullish investors.
However, the broader market sentiment does not entirely align with this bearish outlook. While shorts currently hold the upper hand, any unexpected shift in buying momentum could trigger a wave of short liquidations.
Technical indicators suggest Cardano is experiencing extreme selling pressure, with the Relative Strength Index (RSI) now in the oversold zone. This marks the first instance in six months where ADA has reached this level, typically signaling that bearish momentum is nearing exhaustion. Historically, such conditions have led to minor recoveries.
However, Cardano has repeatedly demonstrated that an oversold RSI does not necessarily translate into significant price rallies. While some assets bounce back sharply after hitting oversold territory, ADA has struggled to capitalize on these moments. As a result, expecting a rapid recovery remains speculative unless broader market conditions improve substantially.
ADA Price Prediction: Recovery Is Likely
Cardano’s price has dropped by 25% over the past week, now trading at $0.71. The asset found support at $0.70, preventing further downside for now. However, the absence of strong bullish momentum raises concerns about ADA’s ability to recover in the near term.
With the previously established bullish falling wedge pattern now invalidated, ADA may struggle to post any significant gains. Given current market conditions, the price is likely to remain range-bound between $0.70 and $0.77. Until a breakout occurs, traders should expect continued consolidation within this zone.
A decisive move above $0.77 could shift momentum in favor of buyers. If ADA flips this resistance into support, a short squeeze may follow, triggering liquidations and fueling a potential rally to $0.85 breaching, which is crucial for ADA to reach $1.00.
However, a rally to $1.00 is far away since, without this breakout, upside potential remains limited, and Cardano could stay trapped in a tight range.
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Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
