The price of ADA, the native token of the Cardano blockchain, has been range-bound between $0.69 and $0.75 over the past week. This consolidation phase has left investors and traders unsure about taking new positions, as they await a clearer market direction in the near future.
Technical analysis suggests that ADA is currently at the lower end of its consolidation range and could potentially see upward momentum if it manages to hold above the $0.69 level. If ADA remains above this support level, it could potentially rise by 9% to reach $0.75. However, a break below $0.68 could lead to a further decline towards $0.65.
On a shorter time frame, ADA is in a downtrend, as indicated by the 200 Exponential Moving Average (EMA) on the four-hour chart. This suggests that the asset may face some selling pressure in the short term.
Currently trading around $0.70, ADA has experienced a 1.5% price drop in the last 24 hours. However, trading volume has also decreased by 12%, indicating reduced participation from traders and investors. Market sentiment seems to be bearish, with on-chain analytics firm Coinglass reporting that bears are currently dominating the asset.
Data from Coinglass also shows that traders are over-leveraged at $0.69, with $9.70 million worth of long positions, and at $0.734, where short positions worth $11.40 million are being held. These over-leveraged levels could potentially lead to increased volatility in the price of ADA in the coming days.
In conclusion, while ADA is currently consolidating within a tight range, traders and investors should closely monitor key support and resistance levels to gauge potential price movements. The market sentiment remains bearish, and caution is advised when considering new positions in ADA.