Key Insights:
- Cardano must break $0.88 resistance to confirm a bullish rally, with $1.20 as the projected target.
- Short liquidations of $526K far outweigh longs, showing stronger pressure on bearish traders in ADA markets.
- Trading volume surged 57% to $2.65B, but options activity plunged, pointing to futures-driven positioning.
Cardano (ADA) was trading at $0.8369 with a 24-hour trading volume of $1.39 billion. The token gained 1% in the last 24 hours but remains down 4% over the past week. Technical charts point to $0.88 as the critical breakout level that could set the stage for a move toward $1.20.
$0.88 Mark as Key Breakout Zone
The ADA/USDT chart shows price consolidating within an ascending channel. Current levels are near $0.82, just above the 0.618 Fibonacci retracement at $0.78, which has been acting as strong support. Resistance sits at $0.88, where the 0.786 Fibonacci retracement aligns with the channel’s mid-level.
Ali, a market analyst, said,
“Cardano $ADA must break $0.88 to confirm a rally toward $1.20!”
However, the dotted projection on his chart suggests that a breakout above $0.88 could trigger a move toward $0.96 and $1.05 before extending to $1.20, where the upper channel boundary and Fibonacci extensions converge.
On the downside, failure to hold above $0.78 could open the way toward $0.72 and $0.66. For now, ADA trades in a narrow range, with $0.88 as the decisive pivot for bulls.
Liquidations Show Short-Side Pressure
Coinglass data shows an imbalance in liquidations. In the last 24 hours, short liquidations reached $526,570 compared to only $2,060 from longs. The liquidation chart reflects larger spikes for shorts, showing that bearish positions have absorbed the majority of recent losses.
This pattern suggests stronger pressure on traders betting against ADA. Green bars, representing long liquidations, remain relatively small, while red bars for shorts dominate. With price holding above $0.82, this squeeze effect may be reinforcing near-term upward momentum.
Derivatives Market Activity
Alongside liquidations, derivatives data shows active positioning. Trading volume rose 57% to $2.65 billion, reflecting renewed interest. Open interest edged up 1% to $1.61 billion, suggesting that traders are maintaining or adding exposure.
Options activity, however, declined. Volume fell 93% to $6,590, and open interest slipped 0.27% to $374,920, showing limited engagement in the options market compared to futures. The futures-driven activity indicates that traders are focusing more on directional bets.
Cardano remains at a decision point. Holding support around $0.82–$0.84 keeps the bullish scenario intact, but confirmation depends on clearing $0.88. A breakout at this level could trigger the projected rally path toward $1.20, while failure may keep ADA locked in its current range.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Source: https://coincu.com/analysis/can-cardano-smash-0-88/