You Won’t Believe What Happened to Cardano (ADA) 😱 Crypto Crash Leaves Investors Shook 🤯

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ADA 🪙 ADA$0.7324h volatility:2.4%Market cap:$26.18 BVol. 24h:$889.34 M, Cardano‘s native cryptocurrency, has been subject to a strong 23% correction over the past week amid the broader crypto market sell. Despite the Cardano price moving into the oversold territory, the bears have greater control over it at present. As of press time, ADA price is trading 4% down at $0.7312 with daily trading volumes surging 15.6% to $900 million. 🤑

Cardano Price Recovery Likely Ahead? 🤔

As said the Cardano bears have been holding the upper hand at this point sending the funding rates negative. As a result, this has led to hesitation from the ADA bulls preventing any Cardano price recovery, despite being in the oversold region. 😒

Although the ADA price recovery seems uncertain at this point, bearish traders need to be careful here. Cardano’s liquidation map reveals that over $4.66 million worth of ADA is at risk of liquidation if the price approaches the $0.77 resistance level. This highlights aggressive bearish bets on further declines, with bearish dominance driving the funding rate into negative territory, signaling strong short interest and caution among bullish traders. 😏

Source: Coinglass

Despite the bearish sentiment, the broader market outlook remains uncertain. While shorts currently dominate, an unexpected surge in buying momentum could spark a series of short liquidations. 🚀

ADA Takes Support at $0.70, Is Bullish Trend Intact? 🤑

After coming under intense selling pressure, the technical indicators show that the Relative Strength Index (RSI) for Cardano price has entered the oversold zone for the first time in six months. This shows that the bearish momentum could be waning leading to ADA price recovery. 🤑

However, Cardano’s track record suggests that an oversold RSI doesn’t always lead to substantial rallies. While some assets rebound strongly from oversold conditions, ADA has consistently struggled to convert these opportunities into meaningful price gains. 😒

But this doesn’t mean that Cardano is out of the bull trend at the moment. Crypto analyst Ali Martinez has highlighted Cardano’s resilience, noting that the cryptocurrency is holding the firm above its critical support zone of $0.81–$0.67. This stability has allowed ADA to maintain its bullish momentum, even amid broader market fluctuations. 💪

Source: Ali Martinez

The investor’s activity around Cardano has tanked recently despite calls for a rally to $1 and above. For this, ADA price needs to give a decisive breakout above $0.81 to activate the bullish momentum. 🚀

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2025-02-07 15:25