Cardano (ADA) price is currently sitting at $0.8697, showing a slight 24-hour gain of 0.37%. The market cap of ADA has increased to $31.07 billion, while the daily trading volume has risen by 2.75% to $1.34 billion. Over the last day, ADA has seen a trading range between a low of $0.8465 and a high of $0.8752, indicating a period of consolidation in the short term.
However, there is a significant cluster of short positions totaling over $109 million that are at risk of liquidation if ADA reaches the $0.99 level. This could potentially lead to a surge in price as traders holding leveraged short positions would be forced to buy back, creating upward momentum.
Exchange-specific data reveals that liquidation clusters are concentrated at Binance ($164.5k), OKX ($55.1k), and Bybit ($126.5k). The concentration of short positions above the current levels suggests that a breakout above this liquidity zone could trigger a sharp acceleration in price.
In terms of technical analysis, the 4-hour chart shows ADA trading just below the midline of its Bollinger Bands, around $0.867. The upper band near $0.896 and the lower band around $0.824 define a narrow trading range. The RSI reading near 49 indicates a neutral market with no clear overbought or oversold conditions, suggesting sideways price action.
To avoid further downside pressure, Cardano price will need to stay above the $0.824 support region. Breaking the $0.896 resistance level could pave the way for a test of the $0.99 price zone. A decisive breakout above that level could attract fresh buying interest, with the next target area falling between $1.022 and $1.20.
In conclusion, the $0.99 level is crucial for ADA as it holds a significant amount of short positions at risk of liquidation. The RSI reading near 49 indicates a neutral market, while the main support and resistance levels for ADA are at $0.824 and $0.896 respectively. A breakout above these levels could propel ADA towards the $1.022–$1.20 range.