Cardano struggles with a bearish trend as key resistance looms, with liquidation data showing strong pressure on long positions.
Cardano (ADA) is showing some volatility as the new year begins, currently trading at $0.3388 after experiencing a 3.2% decline in the past day. Over the course of the day, the price fluctuated between a low of $0.3304 and a peak of $0.3517, indicating some range-bound movement.
Despite this decline, the 24-hour trading volume is up 37%, indicating active market participation during these fluctuations.
Cardano’s 7-day performance shows a more significant 5.1% drop, while its 14-day performance reflects a 7.1% decline, highlighting that ADA has been facing a bearish trend over the past two weeks.
The longer-term downtrend is more evident with a 12.7% loss over the last 30 days, which indicates that Cardano’s performance is not only struggling in the short term but also has yet to regain upward momentum.
Given the negative short-term and mid-term outlook, Cardano needs to break above key resistance levels and build consistent buying pressure to regain stability and spark a potential bullish reversal in the near future. Will ADA continue to struggle, or is it poised for a comeback?
Cardano Poised for Comeback?
TradingView’s 1-day Cardano chart shows a slight upward movement from the recent low. The Supertrend indicator is in a bearish phase, indicated by the red band above the price, suggesting that the trend is still negative. The Chande Momentum Oscillator (CMO) is at -26.63, signaling weak but improving momentum.
Key resistance lies at $0.3968, marked by the Supertrend line, which has proven to be a barrier in the recent price action. A breakthrough above this level would be necessary for ADA to shift its trend and pose a comeback.
On the downside, support lies around $0.330, a level that the price has recently tested. If ADA fails to hold this support, further downside could emerge, with the next potential support zone near $0.30. ADA’s ability to break through resistance and hold above key support will be crucial to determining the next directional movement.
Cardano Liquidation Data
Elsewhere, the recent Cardano liquidation data reveals interesting trends in market sentiment. In the last hour, Cardano’s liquidations totaled $20.58K, all from long positions, with no short positions being liquidated. Similarly, the 4-hour liquidation data shows $141.79K in total, with long positions at $84.18K and short positions at $57.61K, indicating that long traders are facing significant pressure.
For the 12-hour period, liquidations reached a higher total of $171.73K, with long positions at $97.38K and short positions at $74.35K. The 24-hour liquidation volume escalated dramatically to $3.91M, with longs being liquidated at $3.83M and shorts at $84.77K.
