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$ADA, the native token of Cardano, is poised to end its streak of three consecutive red candles with today’s green candle on the 30th of March. In fact, a significant amount of short-leveraged positions were also now on the verge of liquidation amid this recovery.
At press time, $ADA gained a modest 2.55% over the past 24 hours and was trading at $0.2501. During this period, the asset recorded a low of $0.235.
Data from CoinMarketCap showed that, alongside the price movement, strong market participation has also been observed, reflected in trading volume, which has surged over 33% to $445 million.
Massive short-leverage on risk of liquidation
As Cardano’s price and market participation begin to rise, derivatives data from CoinGlass revealed that a massive $3.77 million worth of short-leveraged positions are nearing liquidation.
The data showed that $0.236 on the lower side and $0.252 on the upper side were two key levels for $ADA today, where intraday traders have shown strong interest.
At these levels, traders have built $9.25 million in long-leveraged positions and $3.77 million in short-leveraged positions, which $ADA was now approaching.
Based on this data, the next major resistance appears near $0.27. If the $ADA crosses the $0.252 level, it could see a quick uptick.
Meanwhile, CoinGlass further showed that the $ADA’s Long/Short Ratio has reached 1.16, its highest level in the past month, indicating that traders’ bullish sentiment is strongly dominating.
In simple terms, this means more traders are betting on the price to rise rather than fall.
Cardano eyes potential 21% jump
The daily chart showed that $ADA has successfully tested its key support level of $0.235 (a level it has been holding since January 2021).
Meanwhile, the current price action suggests $ADA may be repeating a historical pattern, which it has recorded on multiple occasions in the past.
According to the daily chart, if $ADA remains above the $0.235 level, it could rally another 21.5% and may reach the $0.305 level in the coming days. However, this bullish thesis could be invalidated if the price falls below the $0.235 level.
Amid this recovery, the Relative Strength Index (RSI) has reached 43.52, which suggested that the asset was still in the bearish zone but was gradually moving toward neutral territory, indicating a potential shift in momentum.
Cardano: Whale accumulation rise
According to the Supply Distribution metric, whales holding between 100,000 and 1 million $ADA tokens, as well as those holding between 10 million and 100 million tokens, have increased their holdings by 230 million tokens from the 25th to the 30th of March.
This suggests that large players viewed the price near the key support level of $0.235 as an ideal buying opportunity and heavily accumulated $ADA at a discount.
Final Summary
- Cardano has shifted market sentiment with just a 2.55% price jump, and its price action now eyes another 21% gain in the coming days.
- Whales appear to be accumulating tokens, as holders with 100k to 1 million $ADA and 10 million to 100 million $ADA have acquired 230 million tokens.
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