Cardano In The Spotlight: Why The $0.6 Level Is Important To ADA
25 Julio 2024 - 4:30PM
NEWSBTC
Cardano (ADA) is currently in a pronounced seven-day decline, which
was exacerbated by a fresh descent below the $0.41 mark. This
decline is part of a broader trend observed across many altcoins,
which have reacted negatively to Ethereum’s significant drop in the
last 24 hours. The decline represents a correction from a bullish
run that began earlier in the month, during which ADA holders saw
good gains. Consequently, this up-and-down movement has created
some critical support and resistance levels for ADA, which will be
crucial for investors to monitor in the coming days. The market
sentiment has shifted considerably, and traders are now focusing on
these key levels to gauge whether ADA might rebound or continue its
downward trajectory. Important Price Levels For ADA At the time of
writing, Cardano is trading at $0.3963 and has corrected by 11.6%
from a peak of $0.4485 in the past 48 hours. Zooming out on a
monthly timeframe shows that the cryptocurrency is merely
correcting after a strong bullish run. During this run, ADA surged
from $0.3213 to $0.4545 within a week, representing an impressive
increase of 41.5%. However, the $0.45 level acted as a significant
resistance point, causing ADA to reverse and enter a consolidation
phase between $0.45 and $0.40, which was followed by a recent
breakdown below the support. Related Reading: Will Bitcoin
Reach A New All-Time High? Crypto Analyst Reveals Why $90,000 Is
Possible According to a technical analysis by a crypto analyst,
this consolidation movement created a pattern similar to a small
bullish flag, and a breakout above $0.45 to the upside could push
ADA to $0.6. This suggests that ADA could soon bounce back up on a
support level and resume its uptrend. On the other hand,
analyzing ADA’s price movement suggests a break to the downside
could push it to as low as a final key support level at $0.32 and
cancel all of the gains it made earlier in the month. However, this
is less likely to happen in the short term, as ADA now finds itself
hovering around the $0.40 price level. What’s Next For
Cardano? According to blockchain analytics firm Santiment, Cardano
(ADA) is one of three cryptocurrencies with significantly negative
funding rates on major exchanges. However, Santiment suggests that
this may not be entirely detrimental. The heavily negative funding
rates indicate a high probability of a price boost from the
potential liquidation of short positions. Related Reading: Golden
Cross Appears On XRP Price Chart, Factors That Could Drive A Fresh
Rally Over the past five weeks, Cardano has been consistently
shorted on exchanges. Should these shorts be liquidated by even a
minor price increase, it could trigger a substantial price surge.
This liquidation could act as a catalyst, propelling ADA’s value on
an extended surge above $0.6. A potential catalyst for a price
increase could be the highly anticipated Chang Hard Fork upgrade to
the Cardano blockchain. Featured image created with Dall.E, chart
from Tradingview.com
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