Cardano (ADA) has encountered challenges in recent weeks, struggling to keep up with the broader crypto market rebound. A decrease in buying demand from major investors has led to heightened volatility and increased liquidations, posing obstacles to any potential price recovery.
Unexpectedly, bullish traders found themselves in a difficult position with Cardano (ADA). According to Coinglass data, a significant amount of liquidation in ADA exceeded $1.2 million. Notably, bullish traders experienced a considerable impact, with almost $930,000 worth of their long positions being liquidated, reinforcing the resistance level at $0.55.
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Cardano’s failure to align with the overall bullish trend in the market and the noteworthy performance of other emerging altcoins has resulted in waning interest among major investors.
Since December, there has been a sharp decline, with the metric dropping from a weekly high of $153 billion on December 11 to just $15.8 billion by January 8, reflecting a 90% reduction. This trend suggests a diminishing likelihood of significant price movements for Cardano in the coming days.
Will the ADA price show a recovery?
The bears hindered Cardano’s recovery near the 50-day Exponential Moving Average (EMA) at $0.56, intensifying selling pressure. As of the latest update, ADA’s price is at $0.5135, reflecting a decline of over 2% from yesterday’s rate.
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Currently, bears dominate, with intense selling pressure observed above moving averages. The RSI is trading below the midline, suggesting an advantage for sellers. While bulls aim to initiate a rally from $0.56, they may face strong selling resistance at the 50-day EMA.