- ADA surged 114% but faced strong rejection at the $0.70 resistance level.
- Cardano’s on-chain indicators suggested a short-term cooling despite optimistic liquidation sentiment.
Cardano (ADA) was the best performer of the week, rising over 114% before facing significant resistance.
The explosive move caught many traders off guard and pushed the price in the consolidation zone up around $0.42, challenging the crucial $0.70 barrier.
However, momentum has since cooled, with ADA setting a 14% retracement in the last 48 hours. This strong decline signals higher levels of selling as traders take profits from the recent rally.
Potential integration of ADA
AMBCrypto’s analysis for IntoTheBlock paints a mixed picture for ADA’s near-term outlook.
Large-scale trading in altcoins has decreased by 24% over the past day, suggesting a decline in institutional activity following a strong price surge.
Source: IntoTheBlock
This may remain short-term as ADA key players have been in a sit-and-watch situation, assessing market dynamics and price action at these key resistance levels.
Likewise, active addresses also decreased by 25%, indicating a slight decline in ADA network participation.
Source: IntoTheBlock
These indicators generally indicate that a cooling off period may be needed before the next significant move in an altcoin.
This suggests strong support.
Despite this decline, Coinglass liquidation data showed a potentially optimistic outlook. The large liquidation level was $0.65, keeping approximately $1.96 million worth of ADA liquid.
This creates a large order pool that acts as a solid support zone and could potentially prevent further declines.
Source: Coinglass
Remain cautiously optimistic!
From a technical perspective, ADA’s price action has broken out of a multi-week descending triangle pattern, which is usually a bullish signal.
Read Cardano (ADA) price prediction for 2024-2025
A rejection of $0.70 would mean immediate resistance, while a higher low would mean maintaining a bullish market structure.
If ADA successfully defends this level, another attempt to break $0.70 could materialize in the near future.
Source: TradingView