Cardano (ADA) Daily Chart Hints the Current Level Acts as Perfect for the Buying Level

Based on the recent price action, ADA could experience a price surge of over 20% to reach the $0.40 level.

Cardano (ADA) has experienced a price decline of nearly 20%, which has sparked a shift in sentiment from a downtrend to an uptrend. This is evident in the ADA daily chart, where the current level has acted as a buying zone for the past four months.

After falling to this level in July 2024, ADA has experienced buying pressure, resulting in an upside rally. This buying zone has been crucial in preventing further price drops and has played a significant role in the asset's price recovery.

Currently, ADA is trading around $0.333, having faced resistance at $0.34. However, the asset is displaying bullish technicals and is supported by a strong level at $0.31, which has acted as a buying zone since July 2024.

Moreover, ADA has experienced a price surge of over 20% when it reaches this level. Combining this observation with the recent price action, there is a possibility of ADA experiencing a notable price surge again to reach the $0.40 level.

notably, the ADA daily chart also showcases a descending triangle pattern. If ADA surges by 20% this time, this pattern will be breached, and we may witness a significant upside rally to the $0.45 level.

Meanwhile, major liquidation levels are present at $0.323 on the lower side and $0.337 on the upper side, with traders heavily over-leveraged at these levels, as reported by the on-chain analytics firm Coinglass.

If the sentiment remains bullish and the price rises to $0.337, nearly $1.53 million worth of short positions will be liquidated. On the other hand, if the sentiment shifts and the price drops to the $0.323 level, approximately $1.99 million worth of long positions will be liquidated.

When this liquidation data is combined with the technical analysis, it suggests that bulls are currently dominating the asset, further indicating a potential upside rally and a buying opportunity.

The above is the detailed content of Cardano (ADA) Daily Chart Hints the Current Level Acts as Perfect for the Buying Level. For more information, please follow other related articles on the PHP Chinese website!