The Cardano (ADA) token is facing increased bearish pressure as it breaks below critical support levels. The cryptocurrency, currently trading at $0.804, has dipped below the 0.786 Fibonacci retracement level at $0.883 and the 100-day Simple Moving Average (SMA) at $0.872. This move signals potential further downside as sellers dominate the market.
Key support at $0.762, corresponding to the 1.0 Fibonacci level, now serves as the final line of defense before the token risks a sharper drop. A breakdown below this level could push prices toward $0.70, with the next target being the 1.272 Fibonacci extension at $0.608. This would mark a 24% decline from current levels.
Besides, the breakdown below the symmetrical triangle’s lower boundary on the daily chart underscores the growing bearish momentum in Cardano cryptocurrency. This technical development reinforces the likelihood of a continued downtrend, solidifying the $0.70 level as a highly probable short-term target.
The recent bearish black crow candlesticks further validate this outlook, as sellers reject recovery attempts near resistance. On the upside, the token must reclaim the $0.883 and 100 SMA to regain investor confidence. A successful breakout could drive the price above the $1.00 mark, but bearish sentiment currently overshadows any recovery attempts.
Traders Bet Big on Cardano Price Decline
Following the ongoing bearish price action, traders are significantly increasing their downside bets on Cardano (ADA) cryptocurrency, as shown by the liquidation map provided by CoinGlass. The data indicates that short-sellers dominate the market, amplifying the risk of liquidations for bullish long positions.
The data shows cumulative short liquidation leverage has surged to $44.92 million, showcasing a strong bearish sentiment among traders. Meanwhile, the $0.78 level acts as a crucial support zone, where bullish traders are heavily over-leveraged, holding approximately $6.20 million in long positions.
This trend suggests market participants are positioning themselves for further downside price movements. This asymmetry between short and long liquidation levels supports the narrative of a continued downtrend, with $0.70 emerging as a key target.
ADA Current Price Action
At the time of writing, the ADA token is trading at $0.804, reflecting a sharp decline of 13.59% over the past 24 hours. Meanwhile, trader and investor activity has dropped by 22% during the same period, as bearish market sentiment dampens participation.
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