Cardano (ADA), the native token of the Cardano blockchain, has been experiencing some fluctuations in its price over the past few days. As of March 22, 2025, ADA has dropped by 1.2%, trading at around $0.70. Despite this small dip, Cardano’s overall market trend shows that the cryptocurrency remains in a crucial phase, where both bulls and bears are vying for control. With its price moving within a narrow range, Cardano’s near-term price action could offer valuable insights into its potential future trajectory.

Price Action and Market Behavior

The last 24 hours have seen ADA’s price hovering around the $0.70 mark, with a noticeable decrease in trading volume—down by 25%. This lower trading volume indicates reduced market participation and suggests that investors are taking a cautious approach, possibly waiting for the price to break out of its current range. When the market volume decreases, it often signals indecision, leaving traders waiting for a catalyst to push the price in either direction.

Currently, Cardano finds itself positioned on the lower ascending trendline of a symmetrical triangle pattern formed on the four-hour chart. This type of pattern often indicates that a breakout is near, as it typically represents a period of consolidation before a strong price movement. If ADA holds its position above the $0.70 support level, the cryptocurrency might be poised for a 4% gain, potentially reaching the $0.74 level in the coming days.

However, should ADA fail to maintain support at this level and break below the ascending trendline, the price could fall by 8%, possibly reaching $0.64. Traders should be on the lookout for any significant price moves beyond these levels, as they could dictate ADA’s future performance.

Key Support and Resistance Levels

Cardano’s price is currently balancing between key support and resistance levels. On the downside, the first critical support level lies at $0.691, while the upper resistance is around $0.723. These levels are crucial for traders to monitor, as they represent areas where significant market activity could trigger either buying or selling pressure.

For instance, if ADA’s price drops to $0.691, approximately $14.15 million worth of long positions could be liquidated. Such a liquidation would put further downward pressure on the price. On the other hand, if Cardano breaks above the $0.723 resistance, it could lead to the liquidation of about $9.51 million worth of short positions. This could create a short squeeze, pushing the price higher.

These liquidation levels demonstrate that a lot of leverage is involved in Cardano’s price action, and significant moves in either direction could have a domino effect on the broader market sentiment. Traders with short or long positions could trigger large price swings depending on how the market reacts to these liquidation events.

Market Sentiment and Outlook

Currently, market sentiment seems to be in favor of the bulls, with long positions outnumbering short ones. This positive sentiment is reflected in the relatively higher number of bets on the long side. If the bullish momentum continues and ADA holds above the support levels, it could climb toward the $0.74 resistance level. A successful breakout above this point would indicate that Cardano is ready to enter a more bullish phase.

However, there are also risks. A failure to hold the key support levels could result in a sharp decline, with the price potentially testing lower levels around $0.64. Given the current market conditions, ADA’s price could continue its sideways movement until a more definitive catalyst emerges.

Conclusion: A Crucial Point for Cardano

Cardano (ADA) finds itself at a crucial crossroads. While the price is still trading within a defined range, technical indicators suggest that ADA could see either an upward breakout or a downward correction. If the price holds steady above the $0.70 support level, there’s potential for a moderate upward movement toward $0.74. However, a breach of the support line could lead to further losses. As always, traders should keep a close eye on market sentiment and key technical levels to anticipate the next significant price movement for Cardano.