Cardano (ADA) has been showing signs of consolidation for several weeks, trading within a range of $0.695 and $0.75. Despite the broader cryptocurrency market experiencing strong momentum, Cardano has remained relatively flat, with minimal price fluctuations in the past 24 hours. This stagnant price action has prompted many traders and analysts to speculate about the next potential move for ADA, with some forecasting a breakout or a further drop depending on whether it holds or breaks key levels.

ADA’s Current Price Action and Consolidation Range

As of March 25, ADA is trading just above $0.7381, reflecting a modest increase of about 1.98% over the last 24 hours. This price level is part of a prolonged consolidation phase between $0.695 and $0.75. While Cardano has remained stagnant, its range-bound trading behavior is a classic characteristic of markets preparing for a significant price move, whether up or down.

At its current price, ADA is facing strong resistance and support, with the upper boundary at $0.756 and the lower boundary near $0.69. Traders are eagerly awaiting a breakout in either direction to signal the next big move for the cryptocurrency.

Potential for a 12% Price Surge

Cardano’s technical indicators suggest that if ADA can break above the $0.756 resistance level and close a daily candle above it, a significant price surge could occur. According to analysts, such a breakout could see Cardano’s price rise by over 12%, pushing the asset toward the $0.85 range. This would mark a solid rally and could trigger more buying pressure from traders looking to capitalize on the upward momentum.

The recent 40% increase in trading volume is also seen as a positive sign, suggesting that traders are becoming more active in the Cardano market. An increase in volume often indicates higher market participation, which can fuel larger price movements, especially when combined with a breakout from a consolidation range.

Risks of a Drop Below $0.69

However, the risks of a downward movement remain a serious consideration for traders. If ADA fails to break above the $0.756 resistance and instead falls below the lower boundary of $0.69, the price could experience a sharp decline, potentially reaching the $0.65 level. This scenario would suggest that Cardano is under significant selling pressure, and further downside could follow.

A key resistance level to monitor in this case is the 200 Exponential Moving Average (EMA) on the daily chart. The 200 EMA often acts as a strong resistance or support level and could play a critical role in determining ADA’s next move. If ADA fails to surpass the 200 EMA, it could indicate that the market is still too cautious to push Cardano past the $0.75 level, potentially leading to more consolidation or even a drop.

Market Sentiment and Long Positions

Despite the current uncertainty, sentiment in the Cardano market remains mostly bullish. According to data from Coinglass, long positions worth approximately $17 million have been built within the last 24 hours. This indicates that a majority of traders are positioning themselves for an upward breakout, as long positions generally suggest optimism about the asset’s future performance.

At the same time, short positions are relatively low at $3 million, indicating that fewer traders are betting against ADA in the current market environment. This could further indicate that market participants are expecting Cardano to rise and are not anticipating significant downside risk in the immediate term.

Accumulation by Whales and Long-Term Holders

Long-term holders and whales have also been accumulating ADA despite the volatility. This accumulation suggests that large investors are confident in the long-term potential of Cardano, which could further support the bullish case for ADA. If this trend continues, it may provide the necessary fuel for ADA to break above its consolidation range and move toward higher price levels.

Conclusion

In conclusion, Cardano is at a critical juncture. While its price remains relatively stagnant within a tight range, the possibility of a breakout looms large. If ADA can break above the $0.756 resistance level, it could surge by 12% or more, reaching the $0.85 target. Conversely, a fall below $0.69 could signal further downside, potentially reaching $0.65.

Traders should keep a close eye on key support and resistance levels in the coming days. With rising trading volume, bullish sentiment, and strong market participation, ADA could be gearing up for a significant move in the near future. Whether that move is upward or downward remains to be seen, but the current consolidation suggests that Cardano is setting the stage for its next big price move.