Cardano market struggles as significant imbalance in liquidations hints at potential reversal for bulls
Cardano (ADA) is showing signs of potential recovery, with a recent golden cross pattern in its technical indicator, a bullish setup that could propel the asset towards the $1 level.
The golden cross, a technical pattern where a short-term moving average crosses above a longer-term moving average, was last seen in August. This occurrence signals a shift to bullish momentum, historically preceding strong price rallies for ADA.
Key factors contributing to this potential recovery include:
- Golden Cross Formation: ADA recently formed a golden cross on both short-term (9-day/21-day MA) and longer-term (50/200 MA) charts, suggesting renewed upward momentum. Previous similar golden crosses preceded explosive gains of around 230-236%, driving ADA from below $0.40 to near $1 in late 2023 and again showing strong rallies in 2024.
- Breakout Above Long-Term Resistance: ADA broke above a six-month or longer resistance level, which had capped its price growth, indicating a potential end to bearish pressure and opening the path to higher targets around $1.00 and beyond (up to $1.20–$1.30 or even $3 according to some projections).
- Strong Support Levels: Sustained support above key levels such as $0.89–$0.90 and $0.49 (a triple-bottom support zone) reinforces bullish structure, reducing downside risk and enabling renewed buying interest.
- Positive Macro and Market Sentiment: While broader crypto sentiment remains crucial, speculation about Federal Reserve interest rate cuts later in 2025 is fueling risk-on appetite, helping Bitcoin and Ethereum alongside ADA. ADA stands out with strong relative performance and 20% weekly gains even when other major cryptos dip.
- Fundamental Developments: The Cardano Foundation’s ongoing focus on building trusted global infrastructure and ecosystem enhancements adds long-term bullish fundamentals that complement technical optimism.
However, the U.S. Consumer Price Index release has caused fluctuations in the broader crypto market, including Cardano. The asset struggled to find stability after a brief breakout to $0.80, falling from an intraday peak of $0.8035 to a low of $0.7678. As of press time, Cardano is exchanging for $0.7905, reflecting a 0.2% increase in the last 24 hours.
Investors are struggling to keep the asset's trading volume in the green zone, with the trading volume currently up by 1.34% at $1.21 billion. The price dip triggered a massive liquidation imbalance, with figures soaring by 3,598%. Some traders suffered a liquidation of $132,030 within the last hour.
Despite these fluctuations, the mix of a golden cross technical pattern, breakout of key resistance, solid support, positive macro catalysts, and promising fundamentals collectively contribute to the outlook for ADA’s recovery to the $1 level and potentially beyond in the near term.
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- As the golden cross formation and breakout above long-term resistance signal renewed bullish momentum for Cardano (ADA), crypto traders are observing the potential for the asset to approach the $1 level, given its historical price rallies following similar technical patterns.
- The strong support levels, positive macro and market sentiment, and fundamental developments surrounding ADA further bolster the argument for trading crypto and finance in Cardano, creating a bullish outlook for the short term.
