Important Points to Note
Cardano (ADA) experienced a 12% drop but managed to hold onto a crucial support level. Despite a significant 80% of traders being bullish and $6 million flowing into the market, there was a delicate balance between hopes of a reversal and the looming risk of a sell-off.
Following a 12% decline in the last 48 hours, Cardano [ADA] reached a critical support level that could determine its future direction.
Given ADA’s historical behavior at this level, traders were once again drawn to the market.
Nearly 80% Favor Long Positions. Wise or Risky?
At the current moment, ADA was trading at $0.8565, showing a 9% decrease in the past 24 hours. This drop in price led to increased activity from both investors and traders, resulting in a 22% surge in trading volume.
Many traders saw this as an opportune entry point.
According to CoinGlass, the Binance ADAUSDT Long/Short Ratio was at 3.99, indicating a significantly higher number of long positions compared to short positions.
Additionally, data showed that 79.96% of accounts were in long positions, while 20.04% were short.
Source: CoinGlass
This disparity raised the question: was the optimism warranted, or was there a possibility of further decline in Cardano’s price?
Will the Trendline Support Hold? ADA’s Fate Hangs in the Balance
Technical analysis by AMBCrypto suggested that traders’ positive sentiment was linked to the current support level.
On the four-hour chart, ADA had been following an upward trendline since early August 2025. With the recent drop, the altcoin once again touched this trendline, sparking hopes of a potential reversal.
Source: TradingView
Considering the price movement, if ADA remains above the upward trendline, there is a strong chance of a significant price turnaround. In such a scenario, the altcoin could potentially rise by 14% to reach the next resistance level at $0.9791.
Moreover, if the momentum pushes past the $1 mark, a further 20% increase towards $1.20 could be on the cards.
Currently, ADA’s Supertrend indicator has turned red and is above the price, indicating a downtrend with strong selling pressure.
Meanwhile, the Relative Strength Index (RSI) stands at 39.97, approaching oversold territory, hinting at a possible reversal.
Concerns Arise as $6 million Worth of ADA Faces Sell-Off
Despite the optimistic outlook, one concerning factor is the significant inflow of ADA into exchanges.
In the last 24 hours, around $5.95 million worth of ADA tokens have been transferred to exchanges, indicating ongoing selling or profit-taking activities.
Source: CoinGlass
Such significant inflows pose a risk of adding selling pressure and prolonging the downward momentum.
text in a simpler way:
Rewrite the text to make it easier to understand:
“Please ensure that all necessary precautions are taken to prevent any potential hazards.”
“Please make sure to be careful and avoid any dangerous situations.”