Journalist
Posted:
- Cardano continued to consolidate below $ 1, a structure that historically precedes the rallies in small groups.
- Does this dormant liquidity roll up for a major movement?
Cardano (ADA) continues its movement linked to the beach less than $ 1, recently violizing key support at $ 0.85 and diving 23%. The 1D graph now highlights a potential demand area close to $ 0.65.
Source: TradingView (ADA / USDT)
However, an escape beyond $ 1 faces strong resistance, which makes action in the short term critical. The recovery of $ 0.85 could report a renewed bullish momentum, setting up a ceiling retain of $ 0.95.
Cardano won 4.45% in the past 24 hours, fueled by a broader market resumption, the total market capitalization of cryptography is approaching 3.20 billions of dollars, up 1.82%, liquidating 871, $ 64K in ADA shorts.
However, the commercial volume, which increased by more than $ 1 billion during the Decontell of ADA to $ 0.65, has now dropped from 24.16% to $ 668.4 million.
If the volume is not recovered, current overvoltage can be driven by short pressure rather than a strong fundamental demand.
Is Cardano ready for a deeper decline?
Cardano’s tight consolidation between $ 0.65 and $ 0.85 fueled speculation.
A MacD Haussier and an RSI multiserment suggest to grow from upward momentum, supported by the wider recovery of the market.
However, intelligent currency entries, which culminated in mid-January alongside the ADA rally at $ 1.15, have since decreased, following its decline by 43%.
Source: Santiment
In the derivative market, open interests increased by 2.16%, indicating that traders are positioned for intraday overvoltage of 4% of ADA.
However, with low underlying fundamentals, this price action could be focused on liquidity rather than a trend reversal. An increasing speculative exposure with a low interest in points purchase increases the probability of a long pressure.
More than $ 100 million in leverages are at risk of liquidation, which indicates that the current Cardano levels may not have a strong “purchase” opportunity.
A removal of the support of $ 0.65 remains at stake. Failure to comply with this level could trigger more downwards, potentially extending the correction. Look carefully!
