Cardano (ADA) is showing signs of recovery after successfully retesting a crucial support level of $0.70. Despite a recent price drop of over 8% in the past 24 hours, ADA has begun to rebound, suggesting that a potential price surge could be on the horizon. The cryptocurrency is currently trading near $0.744, with bulls pushing prices higher as strong accumulation signals further upside momentum.

ADA Faces Crucial Resistance, Eyes $0.81

Cardano’s technical analysis reveals a positive outlook as the asset recovers. After a notable price decline, ADA has found support at $0.70 and is now attempting to move higher. According to experts, if ADA successfully holds above this level, there’s a strong possibility it could surge by 10% in the coming hours, potentially reaching the $0.81 target.

However, ADA is currently facing resistance from the 200 Exponential Moving Average (EMA) on the four-hour time frame. If the asset breaks through this resistance level, the $0.81 price target could quickly be reached, further boosting confidence in a continued upward trend.

Liquidation Levels and Market Dynamics

With ADA’s ongoing recovery, traders who have taken short positions are on the edge of facing liquidation. According to data from on-chain analytics firm Coinglass, the short positions worth approximately $6.67 million are nearing liquidation as ADA’s price rises.

Key liquidation levels are being watched closely by traders, with support at $0.728 on the lower end and resistance at $0.754 on the upper end. If ADA breaks through these levels, it could trigger a cascade of liquidations, further contributing to the price movement in either direction. This dynamic could play a significant role in determining ADA’s next steps, making it essential for investors to monitor these levels carefully.

$25 Million ADA Outflow Signals Accumulation

Aside from the short-term trader activity, long-term holders of Cardano seem to be positioning themselves for further growth. On-chain data reveals that over the past 48 hours, exchanges have experienced a significant outflow of $25 million worth of ADA tokens. This substantial outflow indicates that investors are accumulating ADA, anticipating higher future prices.

The strong accumulation pattern, along with increased demand for the token, has likely contributed to ADA’s recent price recovery. The combination of bullish participation from long-term holders and increasing market activity has led to a surge in ADA’s 24-hour trading volume, which has risen by 55%. This indicates a high level of investor interest, further boosting the bullish sentiment surrounding the cryptocurrency.

ADA’s Outlook and Potential for Growth

With a solid foundation of support at $0.70 and signs of strong accumulation, ADA’s price could continue its upward trajectory in the coming days. If it successfully breaches resistance levels and liquidates over-leveraged short positions, Cardano may see an acceleration toward the $0.81 target.

Investors should keep a close watch on the asset’s price action around the $0.728 and $0.754 levels, as these will be crucial indicators of ADA’s next moves. Additionally, the ongoing accumulation by long-term holders signals that ADA could be positioning itself for future growth, making it an attractive asset for those looking for potential price appreciation.

Conclusion

Cardano’s (ADA) price has been showing resilience, with the cryptocurrency successfully retesting key support at $0.70. As ADA begins to recover, signs of bullish momentum and strong accumulation by investors suggest that the price could rise toward the $0.81 level in the near future. Traders should watch for key resistance and liquidation levels, which will help determine whether the asset can break through and sustain its upward movement. With increasing demand and growing investor interest, Cardano appears to be setting the stage for a potential price surge in the coming days.