Cardano (ADA) is navigating a tight trading range amidst growing market volatility, centering around the crucial $0.63 support level. This situation reflects an ongoing battle between buyers and sellers, with the price unable to break above the descending trendline. The recent price action reveals caution among traders, as reflected by a declining OI-Weighted Funding Rate, now sitting at +0.0017%. This suggests diminishing confidence in bullish positions, despite 71.97% of Binance traders remaining long on ADA.
The Spot Taker CVD remains Taker Buy Dominant, indicating strong buying pressure from spot traders. However, the failure to surpass key resistance levels implies that buyers are facing significant challenges. Meanwhile, critical indicators such as the RSI and MACD show bearish signals, with the RSI slightly above oversold territory at 39.15. This combination of metrics indicates a weakening bullish momentum and potential for a corrective move.
Liquidation Heatmap data reveals dense stop-loss clusters between $0.68 and $0.72. A breakout above these levels could lead to a short squeeze, while failure to reclaim this region might incite further selling as bearish sentiment grows. Given the current setup, ADA seems more poised for a breakdown rather than an upward breakout due to weakening momentum and ongoing selling pressures. Unless buyers can quickly regain strength, a fall below $0.63 may trigger a series of liquidations, heightening volatility and further challenging ADA's market position.
The Spot Taker CVD remains Taker Buy Dominant, indicating strong buying pressure from spot traders. However, the failure to surpass key resistance levels implies that buyers are facing significant challenges. Meanwhile, critical indicators such as the RSI and MACD show bearish signals, with the RSI slightly above oversold territory at 39.15. This combination of metrics indicates a weakening bullish momentum and potential for a corrective move.
Liquidation Heatmap data reveals dense stop-loss clusters between $0.68 and $0.72. A breakout above these levels could lead to a short squeeze, while failure to reclaim this region might incite further selling as bearish sentiment grows. Given the current setup, ADA seems more poised for a breakdown rather than an upward breakout due to weakening momentum and ongoing selling pressures. Unless buyers can quickly regain strength, a fall below $0.63 may trigger a series of liquidations, heightening volatility and further challenging ADA's market position.
