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Highlights
- Cardano price defends key support at $0.60 despite weekend losses.
- Hoskinson’s AI testnet boost fails to trigger sustained ADA rally.
- ADA long positions hit 50%, signaling rising trader confidence.
With the crypto market entering a new week in a bullish mode, the Cardano price stands at $0.6797. Surviving the downfall over the weekends, the ADA price is down at the 50-day SMA, hinting at a potential breakdown.
With the crucial dynamic support acting as the last line of defense, Cardano has hit a crucial crossroads. However, the rising bullish activity of ADA derivative traders reflects the sprouting confidence.
Will this growing confidence help the ADA price launch to $1, or is a pullback to $0.55 inevitable?
Cardano Price Holds Key 50D SMA Support Amid Market Downturn
The Cardano price fluctuates between the declining 100 and 50-day simple moving average lines. Within the declining trend, the ADA price now tests the lower boundary, warning of a potential breakdown.
However, the lower price rejection and the intraday recovery of 0.50% tease a bullish reversal. Over the past 7 days, the ADA price has dropped by nearly 4%, as it failed to stay above the $0.70 threshold.
Furthermore, the increased selling activity close to the 23.60% Fibonacci level at $0.76 reflects the strong bearish influence of the overhead supply zone. This increased selling pressure has resulted in a merger of the MACD and signal lines.
At present, both the average lines are close to 0.00811, hinting at a potential bearish crossover. This will trigger the sell signal, increasing the possibility of a breakdown value.
Based on the previous swing low, the breakdown rally could retest $0.5528 if the $0.60 psychological support breaks down. However, if the broader market recovers and the bullish sentiment for Cardano survives, the uptrend will likely surpass the crucial overhead resistance at $0.7673.
This will increase the possibility of Cardano reaching $1, which is the 50% trend-based Fibonacci level. Hence, for price action traders waiting for a bull run to $1, the $0.7673 breakout will be the initial trigger.
Massive Surge in Long Positions Teases Bullish Reversal
Despite the pullback over the weekend, the bullish confidence in the Cardano price is gradually increasing in the derivatives market. As per the Coinglass data, the ADA Long/Short Ratio Chart reveals a gradual growth in long positions.
Over the past hour, the sudden surge in long positions has reached 50.02% of all open positions, equalizing the long-to-short ratio. This reflects an equal playing field in the Cardano derivatives despite the pullback.
Furthermore, the liquidation map of the ADA-USDT trading pair over Binance reflects the possibility of massive liquidation if the uptrend continues. Based on the data, the uptrend to $0.699, close to the crucial overhead supply zone, will result in a cumulative short liquidation of $3.98 million.
This will consist of $64.78 in 25x leverage and $593.91k in 50x leverage. On the flip side, a potential pullback to $0.662 will shake out $2 million in long liquidations.
AI Testnet Hype Fails to Sustain Rally
Over the weekend, the Cardano price momentarily reached the $0.70 threshold due to the announcement of AI-powered network testing by Charles Hoskinson. The announcement revealed the AI-powered test network for Cardano’s Leios protocol to dramatically increase the transaction throughput.
Furthermore, it will prepare the network for post-quantum cryptographic standards and address the scalability issues. However, the news failed to create a sustained bull run in ADA prices. Still, the innovation strengthens Cardano’s long-term outlook as a future-ready blockchain.
Frequently Asked Questions (FAQs)
1. What is the current market price of Cardano?
2. Will ADA price break below 50-day SMA?
3. Are traders turning bearish on Cardano?
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