Could $0.80 be the next target for Cardano's ADA token as buyers gain power over sellers?
Title: Cardano [ADA]: Bullish Breakout Imminent as Shorts Face Over $880K in Liquidations
Chill out, let's dig into the latest on ADA
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Cardano's vibes are changing, and bears might be feeling the heat as ADA tests the $0.708 resistance. After a solid rebound from the $0.66 zone, the crypto's bullish mojo is on the rise.
retail and institutional traders are getting increasingly optimistic, with crowd sentiment at 0.81 and smart money sentiment higher at 0.99. Coinciding with ADA's move to the channel's upper boundary, this positive shift could lead to a breakthrough if the crypto clears nearby resistance.
Liquidation pressures mounting
The liquidation drama is adding gas to the bullish fire. According to CoinGlass, over $880K in short positions have been wiped out across major exchanges in the last 24 hours, compared to measly $25.53K in long-side liquidations. Binance alone accounted for $421K of these short squeezes, giving bears a serious run for their money.
iced in between $0.74 and $0.75, making them potential magnets for the price if ADA keeps charging forward.
Whales opting out, leaving retail in charge
IntoTheBlock's on-chain metrics show that large transaction volumes have significantly dropped. Transactions above $1 million have plummeted 83.54%, and those above $10 million have tumbled 86.93% from peak levels.
Despite ADA's recent surge, the lack of big whale activity suggests this move was primarily a grassroots one. But the return of big players could bring more firepower to the uptrend if both momentum and key levels are maintained.
Holders banking profits
Santiment's MVRV Ratio highlights that holders are piling up unrealized profits, with the ratio jumping to +13.34%. The market may be heading toward a crucial decision point: either sustaining the optimism or triggering profit-taking. Fortunately, the ratio remains below the 25% risk threshold, providing room for further upside if the prevailing sentiment stays positive.
Aiming for the stars
ADA has reclaimed the 0.618 Fib level at $0.6921 and is eyeing the 0.786 Fib zone of $0.7186. Currently, Cardano is trading at $0.7226, registering a daily gain of 6.22%.
Moving forward, the next targets lie at $0.7523 and $0.8498, aligned with Fib 1.0 and 1.618 extensions. The DMI indicator backs this bullish narrative, with the +DI line hovering above both the -DI and ADX, signifying a strengthening trend.
Price layout, momentum indicators, liquidation pressure, and market sentiment all point toward an explosive breakout if ADA manages to hold above $0.72.
So, what's the final call?
The combination of robust bullish sentiment, short squeezes, technical strength, and improving on-chain profitability makes a strong case for continued gains. However, the absence of whale re-engagement adds a note of caution. If Cardano smashes through $0.75 and tankers clustered short positions, the bulls could push ADA toward $0.80 and beyond in the short term.
Side note: Cardano has broken out from an ascending triangle pattern, increased bullish forces have forced the crypto above key resistance levels, and the EMAs are aligned below the current price, suggesting a continued uptrend[4]. The next significant resistance levels lie at $0.85 and $0.90[4]. Breaking above these could pave the way for potential price targets of $1.10 and $1.30[4]. RSI is at a neutral level (64.58), leaving room for further upward movement[4].
- The bullish atmosphere surrounding Cardano (ADA) intensifies as it tests the $0.708 resistance after a rebound from the $0.66 zone, potentially leading to an explosive breakout if the crypto maintains its position above $0.72.
- Retail and institutional traders are growing increasingly optimistic, with ADA's move towards the upper boundary of its channel coinciding with a positive shift in sentiment that could result in a breakthrough.
- Heaping pressure on the bears, over $880,000 in short positions have been liquidated across major exchanges in the last 24 hours, with Binance alone accounting for $421K of these short squeezes.
