ADA, the native token of the Cardano blockchain, has faced a considerable price drop over the past 24 hours, hitting a crucial support level. As of February 25, 2025, ADA has fallen by 13% and is currently trading around $0.67, with a notable 110% surge in trading volume.
Cardano (ADA) Technical Analysis and Upcoming Level
Expert technical analysis indicates that ADA’s recent decline has brought it to a critical support level at $0.65. Historically, this level has served as a robust price reversal zone. Furthermore, ADA’s daily chart is showing a bullish signal, with technical indicators revealing a bullish divergence over the same period.
In addition to this bullish divergence, ADA’s daily chart seems to be forming a double-bottom price action pattern on the daily timeframe. This bullish pattern suggests that ADA’s price could soon recover and witness significant upside momentum.
Based on recent price action and past trends, if ADA manages to hold above the $0.65 level, there is a high likelihood that the asset could surge by 20%, reaching the $0.84 level in the near future.
Mixed-Sentiment By On-Chain Metrics
Following the notable price drop and as ADA approaches a crucial support level, whales and long-term holders have been accumulating ADA tokens, as per on-chain analytics firm Coinglass. Data from spot inflow/outflow indicates that exchanges have witnessed a substantial outflow of $22 million worth of ADA tokens.
This significant outflow from exchanges suggests potential accumulation, which could generate buying pressure and drive further upside momentum, a trend that the price has already begun to experience gradually.
Despite the bullish market sentiment among whales and long-term holders, traders seem to be leaning towards the short side, anticipating the price to continue its decline in the coming days. Currently, the major liquidation areas are at $0.663 on the lower end and $0.708 on the higher end, with traders being over-leveraged at these levels.
Furthermore, traders have maintained $3.25 million worth of long positions and $8.41 million worth of short positions at these levels. This data indicates that bears are active and currently exerting dominance over the asset.
In conclusion, while ADA has faced a significant price drop recently, technical analysis and on-chain metrics suggest a potential reversal and bullish outlook for the token. Traders and investors should closely monitor price movements and key levels to capitalize on potential opportunities in the market.