Cardano Avoids a Breakdown, Now Looks Ready To ‘Squeeze’ Out A Bounce
Cardano is holding key support within a falling wedge pattern, supported by rising big-wallet interest, setting up a potential short squeeze bounce.Summary
The Cardano (ADA) price has recently dipped about 10% but has successfully defended the lower trend line of a falling wedge pattern, indicating buyers are still defending the structure. This defense is reinforced by the Chaikin Money Flow (CMF) indicator, which is turning upward, signaling renewed capital inflows from large holders, often preceding a rebound. Furthermore, the derivatives market shows heavy short positioning—nearly four times the long exposure—creating a potential 'squeeze' setup. A modest 2% price increase could trigger short liquidations starting at $0.51, amplifying any upward move. For a confirmed bounce, ADA needs to surpass $0.51, with a full breakout attempt requiring a clear break above resistance near $0.64; invalidation of this bullish structure occurs if the price drops below $0.49.
(Source：BeInCrypto)