Cardano (ADA) must hold $0.52 support for a potential breakout, with analysts targeting a 1-month high, while market liquidations highlight volatility.
Cardano is currently trading at $0.567, showing an 8.0% increase over the past 7 days, with a market cap of approximately $20.8 billion. Despite this recent uptick, ADA is still facing a 12.1% decline in the last 14 days and a 20.8% drop over the past month, indicating struggles in the midterm.
However, the positive movement in the shorter term suggests an imminent shift in momentum, with resistance around $0.66-$0.68. Will ADA bulls beat the bears?
Cardano Price Analysis
Notably, Cardano’s shorter-term chart shows a slight plunge of 2.3% in the past 24 hours. This timeframe additionally poses signs of bull exhaustion, as momentum indicators are in the overbought zone.
Specifically, the Stochastic RSI is currently at 84.20, which suggests Cardano is in the overbought zone, indicating that it may face short-term resistance or a potential pullback.
Further, the MACD indicator shows a negative divergence with the signal line crossing below the MACD line, which could imply weakening bullish momentum. However, ADA is still holding steady above the key support of $0.52, suggesting that a breakout could occur if it manages to hold this range.
Traders can watch for any breakout above the $0.59 resistance zone or signs of further retracement if bearish momentum strengthens.
Expert Analyst and Derivative Market
Furthermore, an analyst on X, Ali Martinez, trusts the strength of this support zone. He, however, placed his support lower at $0.50, stating that Cardano must hold this level to keep the path open for a potential rebound.
If ADA can maintain this support, Martinez believes it could regain bullish momentum and target the $0.70 resistance zone, which represents a 1-month peak.
Notably, to reach $0.70, Cardano would need to surge by approximately 23.4% from the current price of $0.567. As resistance continues to limit Cardano bulls, the market is experiencing significant liquidation events.
Over the past 24 hours, a total of $1.20 million has been wiped from the market, with long positions accounting for $1.13 million, compared to $64.94K in short positions. The smaller short liquidation figure can suggest that the market is still cautious about downward moves.