The latest Cardano support has flipped to resistance, signaling potential further downside as long positions dominate recent liquidations.
Cardano (ADA) has experienced a significant decline of 8.4% in the last 24 hours, currently priced at $0.4231.
Over the past day, ADA fluctuated between $0.4258 and $0.4738, highlighting a notable level of volatility. The 7-day performance shows a 5.7% drop, while the 14-day data reflects a smaller decline of 1.8%.
Given the recent slump and broader downtrend, Cardano is facing challenges in regaining bullish momentum. The current price range, coupled with a significant loss in the last 24 hours, signals possible further downward pressure or consolidation. Will ADA fall further?
Will Cardano Fall Further?
On the technical end, Cardano is currently trading at the lower end of its range, with the daily chart showing a downward trend from a recent high above $0.48.
The Fibonacci retracement levels show that ADA has retraced below the 0.236 level at $0.44743, with the next key support at $0.37138 (0.0 level).
The 0.382 and 0.5 levels provide potential resistance points at $0.49448 and $0.53250, respectively.
Currently, the price remains below the 0.236 Fibonacci level, which suggests that further downside is possible unless ADA can regain momentum and break this resistance. This level, based at $0.4474, was considered support when ADA had surged above $0.48, but has now flipped into immediate resistance.
The MACD indicator shows a bullish signal, with the blue line (MACD) above the orange signal line, reinforcing the idea of continued upward pressure. The histogram shows a slight increase in green bars, hinting at potential bullish divergence if the momentum shifts.
If Cardano can bounce and break through the $0.44743 resistance, it may target the higher Fibonacci levels, but a fall below $0.40 could indicate a deeper retracement towards the next support.
Cardano Longs Dominate Liquidations
Looking elsewhere, Cardano’s recent liquidation data highlights growing volatility, with long positions dominating both the 12-hour and 24-hour liquidations. Over the last 12 hours, Cardano has seen significant liquidation activity, with a total of $1.91 million in liquidations. Long positions accounted for the majority of this, at $1.86 million, while short positions were minimal at just $53.23K.
In the last 24 hours, the liquidation volume increased further to $2.24 million. Long positions were still dominant, with $2.02 million in liquidations, while short positions saw just $224.44K liquidated. This indicates that long positions have been hit harder as the market adjusts, signaling potential further pressure or a shift in sentiment.
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