Cardano stuck in 2-month range: Is a long-term bottom in sight for ADA?
Cardano (ADA) has been trading within a narrow range for nearly two months, failing to capitalize on the bullish momentum seen in Bitcoin and other altcoins in March. A decisive breakout above $0.30 or below $0.245 is needed to determine its next price trend.
Despite underperforming, ADA shows potential long-term bottom signals. Santiment data indicates a -43% 365-day MVRV, reflecting significant losses for holders and placing the asset in a historical buy zone. Additionally, Binance funding rates are at their most negative since mid-2023, suggesting extreme shorting pressure. These conditions have historically preceded market bottoms and could fuel a short squeeze, attracting capital inflows.
However, investors should remain cautious. Any significant rally may face selling pressure from profit-taking and investors exiting at breakeven. Key resistance levels to watch are $0.30, $0.315, $0.365, and $0.43, where taking partial profits is advised. A drop below the $0.235–$0.24 range could invalidate the bullish outlook and signal continued seller dominance.
ambcrypto03/24 21:14
