$73 Million at Stake for Traders

Cardano is showing signs of a potential breakout after weeks of struggling to push higher. ADA price has been attempting to secure upward momentum but has faced repeated rejections at key resistance levels. 

With investors growing more confident, ADA could be preparing for another test of higher ground.

Cardano Traders Warned

The Chaikin Money Flow (CMF) indicator is recording a notable uptick, currently sitting at a near two-month high. This move signals increasing inflows into ADA, reflecting growing optimism among traders. Strong inflows typically translate into price support and are essential for sustained rallies.

Sponsored

Sponsored

Investor enthusiasm is becoming more visible as ADA attempts to recover from its recent consolidation. The continuation of this momentum could allow the altcoin to test the $1 threshold in the coming sessions. Sustained buying pressure will be critical in driving ADA higher.

Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.

Cardano’s liquidation map highlights an important risk for traders positioned against the rally. If ADA climbs toward $1, short traders could face liquidation losses of around $73.5 million. This development could shift market sentiment dramatically in favor of bulls.

While such liquidations may help ADA extend its rise, they also carry potential drawbacks. A surge in liquidations could reduce open interest, leading to a temporary pullback. This dynamic is one to watch closely as it will likely shape ADA’s near-term volatility.

ADA Price Finds Support

At press time, ADA is trading at $0.93, attempting to secure this level as support. Success here would allow the token to target the resistance level at $0.96. This has proven to be a critical barrier for the altcoin in the recent past.

If ADA can breach $0.96 and flip it into support, the path toward $1 becomes more attainable. Such a move may also attract new investors, adding further capital inflows that could strengthen the ongoing bullish momentum.

However, ADA’s history of rejection at both $0.93 and $0.96 underscores the risk of a reversal. If sellers emerge, ADA could fall to $0.87. This would invalidate the bullish setup and reinforce short-term caution among traders.