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The latest Cardano support has flipped to resistance, signaling potential further downside as long positions dominate recent liquidations.
Cardano ($ADA) has experienced a significant decline of 8.4% in the last 24 hours, currently priced at $0.4231.
Over the past day, $ADA fluctuated between $0.4258 and $0.4738, highlighting a notable level of volatility. The 7-day performance shows a 5.7% drop, while the 14-day data reflects a smaller decline of 1.8%.
Given the recent slump and broader downtrend, Cardano is facing challenges in regaining bullish momentum. The current price range, coupled with a significant loss in the last 24 hours, signals possible further downward pressure or consolidation. Will $ADA fall further?
Will Cardano Fall Further?
On the technical end, Cardano is currently trading at the lower end of its range, with the daily chart showing a downward trend from a recent high above $0.48.
The Fibonacci retracement levels show that $ADA has retraced below the 0.236 level at $0.44743, with the next key support at $0.37138 (0.0 level).
The 0.382 and 0.5 levels provide potential resistance points at $0.49448 and $0.53250, respectively.
Currently, the price remains below the 0.236 Fibonacci level, which suggests that further downside is possible unless $ADA can regain momentum and break this resistance. This level, based at $0.4474, was considered support when $ADA had surged above $0.48, but has now flipped into immediate resistance.
The MACD indicator shows a bullish signal, with the blue line (MACD) above the orange signal line, reinforcing the idea of continued upward pressure. The histogram shows a slight increase in green bars, hinting at potential bullish divergence if the momentum shifts.
If Cardano can bounce and break through the $0.44743 resistance, it may target the higher Fibonacci levels, but a fall below $0.40 could indicate a deeper retracement towards the next support.
Cardano Longs Dominate Liquidations
Looking elsewhere, Cardano’s recent liquidation data highlights growing volatility, with long positions dominating both the 12-hour and 24-hour liquidations. Over the last 12 hours, Cardano has seen significant liquidation activity, with a total of $1.91 million in liquidations. Long positions accounted for the majority of this, at $1.86 million, while short positions were minimal at just $53.23K.
In the last 24 hours, the liquidation volume increased further to $2.24 million. Long positions were still dominant, with $2.02 million in liquidations, while short positions saw just $224.44K liquidated. This indicates that long positions have been hit harder as the market adjusts, signaling potential further pressure or a shift in sentiment.