Will Cardano Price Hit $1 or $0.55? MACD Flashes Sell Signal

Cardano price trades at $0.6797 as the crypto market witnesses a bearish Sunday. Over the weekend, the ADA price dropped by 3.34% from $0.69 to a closing price of $0.6764. Despite the downfall, Cardano holds its ground above a crucial dynamic support, acting as the last line of defense. Notably, the token is at a crucial crossroads as indicated by the heightened bullish activity of ADA derivative traders, which reflects the increased underlying confidence. Will this growing confidence help the ADA price launch to $1, or is a pullback to $0.55 inevitable? Cardano Price Holds Key 50D SMA Support Amid Market Downturn The Cardano price fluctuates between the declining 100 and 50-day simple moving average lines. Within the declining trend, the ADA price now tests the lower boundary, warning of a potential breakdown. However, the lower price rejection and the intraday recovery of 0.50% tease a bullish reversal. Over the past 7 days, the ADA price has dropped by nearly 4%, as it failed to sustain above the $0.70 threshold. Furthermore, the increased selling activity close to the 23.60% Fibonacci level at $0.76 reflects the strong bearish influence of the overhead supply zone. This increased selling pressure has resulted in a merger of the MACD and signal lines. At present, both the average lines are close to 0.00811, hinting at a potential bearish crossover. This will trigger the sell signal, increasing the possibility of a breakdown value. Based on the previous swing low, the breakdown rally could retest the $0.5528 if the $0.60 psychological support breaks down. However, if the broader market recovers and the bullish sentiment for Cardano survives, the uptrend will likely surpass the crucial overhead resistance at $0.7673. This will increase the possibility of Cardano reaching $1, which is the 50% trend-based Fibonacci level. Hence, for price action traders waiting for a bull run to $1, the $0.7673 breakout will be the initial trigger. Massive Surge in Long Positions Teases Bullish Reversal Despite the pullback over the weekend, the bullish confidence in the Cardano price grows in the derivatives market. As per the Coinglass data , the ADA Long/Short Ratio Chart reveals a massive increase in long positions. Over the past 4 hours, the sudden surge in long positions has reached 70% of all open positions, driving the long-to-short ratio to 2.40. This reflects the strong bullish confidence in the Cardano price despite the pullback. Furthermore, the liquidation map of the ADA-USDT trading pair over Binance reflects the possibility of massive liquidation if the uptrend continues. Based on the data, the uptrend to $0.70 close to the crucial overhead supply zone will result in a cumulative short liquidation of $4.44 million. This will consist of $169,000 in 25x leverage and $779,000 in 50x leverage. On the flip side, a potential pullback to $0.66 will shake out more than $2.33 million in long liquidations. AI Testnet Hype Fails to Sustain Rally Over the weekend, the Cardano price momentarily reached the $0.70 threshold due to the announcement of AI-powered network testing by Charles Hoskinson. The announcement revealed the AI-powered test network for Cardano’s Leios protocol to dramatically increase the transaction throughput. Furthermore, it will prepare the network for post-quantum cryptographic standards and address the scalability issues. However, the news failed to create a sustained bull run in ADA prices. Still, the innovation strengthens Cardano’s long-term outlook as a future-ready blockchain. Frequently Asked Questions (FAQs) The Cardano price is down by 3.34% and holds a current market price of $0.6797. Due to broader market pullback, the downfall in ADA price warns a steeper correction with the 50-day SMA breakdown. The ADA derivatives showcase optimism among traders as long positions rise to 70% in the last four hours. ✓ Share: Coingape Staff CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article. Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss. Source: https://coingape.com/markets/cardano-price-warns-0-55-retest-as-macd-sirens-sell-signal/