Cardano Price’s Journey To $1, How Long?

Cardano (ADA) price has been steadily moving higher this week, despite hiccups in a volatile market. This means that it is inching closer to its $1 target, and short liquidations added to the bullish trend potential.

ADA Price Action and Prediction

ADA price finalized a breakout through its descending wedge pattern, but trading on the daily charts confirmed a potential trend change.

Buyers maintained ADA value at $0.715 before it established a resilient consolidation base.

ADA showed a follow-through strength after breaking out from its descending wedge, which served as a basis for bullish predictions as the coin closed near $0.715.

The descending wedge formation, together with market demand rebound, revealed that buying pressure took over the market.

ADA price showed signs of prospects for growth up to $1.2456, followed by another emerging level at $1.4642 if the market sentiment kept strengthening.

Cardano daily price chart | Source: TradingView

Bulls could continue in control if ADA sustained higher low points while consistently surpassing its breakout level.

ADA’s potential for a breakout advancement could gain more strength from rising volume, which would confirm the wedge pattern’s demise. A healthy post-breakout pullback should occur to validate future bullish trends.

The breakout stood valid as of press time, but investors needed to exercise caution before ADA broke through decisively.

Cardano Liquidations

On the previous day, the coin saw $1.2 million worth of liquidations, where short position liquidations totaled $318.6K and long positions made up another $ 906.7K.

This suggested the price rise led to shorts giving up more than double the amount of liquidated value in the market as their positions were being washed out.

Short positions endured large unexpected surges that made bearish traders sell at losses, especially when the market auto-closed their positions, triggering additional upward price movement.

Short liquidations totaling $318.6K indicated that an upward price trend may proceed.

Besides the $906.7K worth of net long positions suggesting bulls were at risk of volatility, it also showed that bulls remained vulnerable to support zone failures.

Profit-takers evident in the market favored bulls, but market participants needed to stay alert because exhaustion risks exist in this trading scenario.

The market showed a fast reaction to price shifts through its liquidations, which typically occurred during important trend alteration or breakout attempts.

Cardano Daily Trading Volume

Worth noting was also the daily trading volume of Cardano, which exceeded $954.78 Million as market activity saw an 8.01% growth. The volume then saw decrease by 12.5% to %576.41 million.

Investor interest seemed to spike sharply after the price drop of 0.85% brought ADA’s value to $0.7161, and possibly due to technical breakout events.

The total market cap of ADA reached $25.08 billion while its fully diluted valuation (FDV) reached $31.99 billion. This provided strong liquidity as the volume-to-market cap ratio read 2.31%.

If sustained activity volume held steady, ADA had the potential to keep the momentum moving up despite potential upcoming short-term market fluctuations.

Volume decline could indicate market exhaustion. The recent volatility spike showed user reconnection to the network, which may reinforce bull market perspectives at least for the upcoming time period.

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