ADA, the native token of the Cardano blockchain, appears to be continuing its ongoing consolidation. Over the past week, ADA has been trading within a tight range between $0.69 and $0.75.
However, the prevailing market uncertainty has left investors and traders uncertain about building positions, as they await clearer market direction in the coming days.
Cardano (ADA) Technical Analysis and Upcoming Level
According to expert technical analysis, ADA is currently at the lower boundary of its consolidation zone and is poised for upside momentum, provided it holds above the $0.69 level in the coming days.
Based on recent price action and historical patterns, if ADA remains above this lower boundary, there is a strong possibility it could soar by 9% to reach the $0.75 level. However, if the asset falls below the $0.68 level, it could decline further to $0.65.
Source: Trading View
On a lower time frame, the asset is in a downtrend, as indicated by the 200 Exponential Moving Average (EMA) on the four-hour chart.
Current Price Momentum and Over-Leveraged Levels
ADA is currently trading near $0.70 and has experienced a 1.5% price drop in the past 24 hours. However, during the same period, its trading volume declined by 12%, indicating traders' and investors' fears, as they have reduced their participation compared to the previous day.
Looking at the current market sentiment, it appears that bears are dominating the asset, as reported by the on-chain analytics firm Coinglass.
Source: Coinglass
Data reveals that traders are currently over-leveraged at $0.69 on the lower level, where they have built $9.70 million worth of long positions. Another over-leveraged level is $0.734, where traders betting on the short side are holding $11.40 million worth of short positions.
