Cardano’s ADA token has broken a three-day losing streak with a modest price recovery, rising 2.55% to trade at $0.2501. The rebound puts nearly $3.8 million in short-leveraged positions at risk of liquidation, while derivatives data shows trader bullish sentiment has reached a one-month high. On-chain analytics also indicate whales have accumulated an additional 230 million ADA tokens this week, viewing the key $0.235 support level as a buying opportunity.
The native token of Cardano, ADA, is poised to end a three-day decline with a green candle on March 30. A significant amount of short-leveraged positions are now on the verge of liquidation amid this recovery.
At press time, ADA gained 2.55% over 24 hours and was trading at $0.2501. Data from CoinMarketCap showed trading volume surged over 33% to $445 million, reflecting strong market participation.
Derivatives data from CoinGlass revealed that $3.77 million worth of short-leveraged positions are nearing liquidation. The data showed $0.236 and $0.252 were two key intraday levels where traders built $9.25 million in long positions and $3.77 million in short positions.
The next major resistance appears near $0.27. “If the ADA crosses the $0.252 level, it could see a quick uptick,” the data suggested.
CoinGlass further showed the ADA’s Long/Short Ratio reached 1.16, its highest level in the past month. This indicates traders’ bullish sentiment is strongly dominating, meaning more are betting on the price to rise.
The daily chart showed ADA successfully tested its key support level of $0.235, a level held since January 2021. Current price action suggests ADA may be repeating a historical pattern recorded on multiple past occasions.
If ADA remains above $0.235, it could rally another 21.5% to reach $0.305. This bullish thesis could be invalidated if the price falls below the $0.235 level.
The Relative Strength Index (RSI) reached 43.52, suggesting the asset was still in the bearish zone but moving toward neutral territory. This indicates a potential shift in momentum.
According to the Supply Distribution metric, whales holding 100,000 to 1 million ADA and those holding 10 million to 100 million tokens increased holdings by 230 million tokens from March 25 to 30. This suggests large players viewed the price near the $0.235 support as an ideal buying opportunity.
