Cardano (ADA) Price Prediction For February 23

Cardano ($ADA) recently witnessed an impressive recovery of nearly 4%. However, the price now seems to be moving toward a retest of the ascending trendline support. This decline is driven by bearish market sentiment and the recent heist experienced by Bybit.

Cardano ($ADA) Current Momentum

As the $ADA price nears the support level, it becomes crucial to see whether the asset will hold this level. If the market does not experience a massive sell-off, the price may stabilize. However, if selling pressure increases, the market will likely continue this trend until sentiment shifts.

$ADA Technical Analysis and Upcoming Levels

According to expert technical analysis, $ADA still holds its upside potential as long as it trades above the ascending trendline or the $0.73 mark. Looking at the daily and four-hour time frames, $ADA appears to be forming a bullish cup-and-handle pattern along with an ascending triangle pattern, reinforcing its bullish outlook.

Based on recent price action, $ADA could soon hit the $0.85 level once it crosses the $0.78 mark. However, given the current market sentiment, if $ADA falls and closes a four-hour candle below the $0.74 level, we could witness a heavy sell-off and a notable 10% price drop, bringing it down to the $0.65 level.

As of now, the asset is trading below the 200 Exponential Moving Average (EMA) on the four-hour time frame, indicating that it is still in a downtrend. Meanwhile, its Average Directional Index (ADX) stands at 12, suggesting weak trend strength, which could be a key reason why $ADA has failed to rally.

Current Price Momentum and Over-Leveraged Levels

Looking at the current market sentiment, intraday traders are over-leveraged at the $0.76 level on the long side, with $2.23 million worth of long positions. Meanwhile, the $0.785 level is another over-leveraged zone where traders betting on the short side have built $2 million worth of short positions.

Examining these over-leveraged positions, it appears that bulls are dominating, which could help $ADA’s price stay above the crucial trendline.

$ADA is currently trading near $0.77 and has experienced a modest 0.50% price surge in the past 24 hours. However, during the same period, its trading volume dropped by 50%, indicating fear among traders and investors, leading to lower participation compared to the previous day.