Cardano (ADA) experienced a period of price fluctuation. Despite the efforts to recover, ADA was faced with challenges in maintaining its ascending momentum.
While Altcoin has retained an upward trend since the beginning of the month, it now faces a challenge. Traders can be removed from participation, which has potentially blocked any new price resumption.
Cardano merchants are in difficulty
The feeling around Cardano (ADA) is mixed. According to the liquidation card, short traders are disadvantaged if ADA continues its upward trend. A violation of $ 0.77 would result in a liquidation of approximately $ 20 million in short -term contracts.
This could cause upward pressure on the price, as shorts are forced to close their positions.
However, without a strong optimistic momentum, this upward potential may not materialize, keeping prudent traders. Although short traders can undergo substantial losses if ADA increases, this risk does not necessarily mean that the upward trend is durable.
Overall, the momentum of the Cardano market reflects a feeling of uncertainty. The number of addresses active on the network has recently dropped to a four -month 20,700 low. This drop in investors’ participation indicates a lack of enthusiasm among Ada holders. Many investors apparently withdraw, awaiting clearer recovery signals before re -engage with the token.
This lack of participation had a negative impact on the liquidity and volume of Cardano transactions, further influencing its price dynamics. The decreasing number of active addresses also suggests that traders hesitate to invest in ADA, which could slow down any potential recovery in prices.
Ada Price faces the barrier
Cardano is currently negotiated at $ 0.70, holding above the support level of $ 0.70, and the higher trend line has supported the price since early March. The immediate objective of ADA is to violate the level of resistance of $ 0.77, but that remains a challenge. The realization of this would require an increase of approximately 9%, which can be difficult under current market conditions.
In the absence of a wider market rally, ADA should remain consolidated in the resistance of $ 0.77. If the Altcoin does not hold the support of $ 0.70, it could be dropped, potentially fall to $ 0.62. This would invalidate recent upward perspectives, further attenuating the confidence of investors.
If the ADA successfully strikes the resistance of $ 0.77, it could reach $ 0.85, thus invalidating the lower thesis. Such a decision would probably signal a more sustained recovery because it would erase an important obstacle for Cardano.
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