ADA, the native token of the Cardano blockchain, is currently attracting significant attention from the crypto community due to an asset manager’s recent filing for a Cardano Exchange-Traded Fund (ETF) in the United States. This move has sparked a notable increase in interest among traders and investors, leading to a strong upward trend in the market.
Cardano (ADA) Losing its Gain
Despite the positive momentum pushing ADA towards a key resistance level, the asset has encountered substantial sell-offs, causing its price to decline—disappointing traders and investors in the process.
However, despite this recent price drop, ADA has managed to maintain its upward trajectory by surpassing the 200 Exponential Moving Average (EMA) on the daily timeframe. Furthermore, the significant selling pressure today has not dampened investor sentiment, with long-term holders continuing to accumulate the token.
Current Price Momentum
ADA is currently priced around $0.77, experiencing a price surge of over 11% in the past 24 hours. Although the asset reached an intraday high of $0.815 with a 16% gain, a portion of these gains has been retraced, likely due to profit-taking and prevailing market sentiment.
Despite the retracement, trader and investor participation has surged by more than 120% during the same period.
ADA Price Action
Technical analysis suggests that ADA is currently facing a crucial resistance level at $0.85, where it encountered resistance today.
Based on recent price action, if ADA manages to rally and breach the $0.85 level, closing a daily candle above it, there is a strong possibility of a 32% surge to reach the $1.13 level in the future.
ADA’s Major Liquidation Areas
Currently, traders are adopting a mixed approach. The main liquidation areas are currently near $0.734, where long position holders are over-leveraged with $18.80 million in long positions. Conversely, $0.826 represents another liquidation level, where short position holders are over-leveraged with $18.20 million in short positions.
Combining these on-chain metrics with technical analysis reveals that long-term holders are accumulating tokens while intraday traders are capitalizing on current market sentiment.