Cardano Must Hold the $0.52 Support for a Potential Breakout, Here’s How
Cardano (ADA) is showing an 8.0% increase over the past 7 days, trading at $0.567 with a market cap of $20.8 billion, despite facing midterm struggles including a 20.8% monthly decline. Analysts highlight the importance of maintaining key support at $0.52, with some expecting it to rebound if this level holds. Resistance points are noted at $0.59 and $0.66-$0.68, with a potential target of $0.70, a 1-month high, requiring a 23.4% surge. However, bearish momentum is signaled by the MACD indicator and market liquidation data, with $1.20 million liquidated in 24 hours primarily from long positions, reflecting ongoing market volatility.
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Current Price and Weekly Performance
Cardano (ADA) is currently trading at $0.567, showing an 8.0% increase over the past 7 days, with a market cap of approximately $20.8 billion. Despite this growth in the short term, ADA is still grappling with a 12.1% decline over the last 14 days and a 20.8% drop over the past month, highlighting its midterm struggles.
Potential for Breakout and Resistance Levels
Positive movement in the shorter term suggests an imminent momentum shift, with resistance levels around $0.66-$0.68. Analysts are speculating whether ADA bulls can overcome this resistance, with key support resting at $0.52. Holding this level could lead to a potential breakout, making these price points critical in the coming days.
MACD Indicator and Market Signals
The MACD indicator reveals a negative divergence, as the signal line has crossed below the MACD line. This could indicate weakening bullish momentum. However, ADA is still stable above the critical $0.52 support level, suggesting that a breakout is still possible if this range is maintained.
Expert Perspective and Resistance Targets
An analyst on X, Ali Martinez, emphasized the importance of the support zone, setting a lower threshold at $0.50. According to Martinez, ADA must hold this level to maintain a path toward a rebound. If ADA secures this support, it could regain bullish momentum and target the $0.70 resistance zone, a 1-month high requiring an approximately 23.4% surge from the current price of $0.567.
Market Liquidation and Caution
In the past 24 hours, $1.20 million has been liquidated from the market. Notably, long positions account for $1.13 million, compared to only $64.94K in short positions. The much smaller short liquidation indicates that the market remains cautious about potential downward movements, reflecting ongoing uncertainty in price direction.