Cardano (ADA) is facing strong selling pressure, invalidating its bullish outlook. With liquidation risks rising, can ADA break out or remain range-bound?
Cardano Faces Selling Pressure, Recovery Uncertain
Cardano’s price has failed to sustain a meaningful rebound, keeping it under bearish control. Despite oversold conditions suggesting a potential reversal, ADA struggles to break past key resistance levels.
Market sentiment remains cautious, as sellers maintain dominance, limiting any chances of an immediate recovery.
Cardano Traders at Risk of Heavy Losses
Liquidation data shows over $4.66 million worth of ADA could be liquidated if the price rebounds toward $0.77 resistance. This suggests that short sellers are aggressively betting against ADA, driving its funding rate into negative territory.
However, a sudden increase in buying momentum could trigger a short squeeze, forcing liquidations and potentially fueling a price surge.
Technical Indicators: Is ADA Oversold?
🔹 RSI (Relative Strength Index) is in the oversold zone for the first time in six months, signaling that bearish momentum may be weakening.
🔹 While historically, oversold conditions have led to rebounds, ADA has struggled to capitalize on these opportunities.
🔹 A strong breakout above $0.77 could shift momentum in favor of buyers.
ADA Price Prediction: Can Cardano Recover?
Cardano has dropped 25% in the past week, now trading at $0.71. Support at $0.70 has prevented further declines, but the absence of strong buying pressure limits the chances of a major recovery.
✅ Key resistance: $0.77 – A breakout could trigger a rally to $0.85.
✅ Bullish target: $1.00 – ADA must flip $0.85 into support to gain bullish momentum.
❌ Bearish scenario: If ADA fails to break out, it could remain range-bound between $0.70 and $0.77.
For now, traders should watch for a decisive move above $0.77, which could indicate a potential rally.
Key Takeaways
📌 Cardano remains under strong selling pressure, struggling to recover.
📌 Liquidation risks increase as ADA nears key resistance at $0.77.
📌 Oversold RSI suggests bearish exhaustion, but no strong recovery yet.
📌 A breakout above $0.77 could trigger a short squeeze and push ADA higher.
📌 Until then, ADA is likely to trade between $0.70 and $0.77.
