Cardano (ADA) soars 10%: Should You buy now?

Cardano stuck below $0.3

Currently trading in a price zone between $0.28 and $0.29, the native token of the Cardano blockchain has surprised investors with a lightning-fast surge. Within 24 hours, trading volume jumped by more than 144%, reaching $839 million. This momentum allowed ADA to significantly outperform its direct competitors within the top 10, although it remains very far from its ATH.

However, the data reveals a more nuanced reality about the market’s state. According to recent metrics, sentiment around Cardano stagnates at 25%, one of the lowest levels among the top 100 market capitalizations in the crypto space. This distrust is partly explained by large wallet activity: whales massively reduced their positions just before this surge, introducing latent selling pressure.

Can Cardano trigger a rally after this breakout?

From a technical perspective, Cardano’s recent movement resembles a breakout above the key resistance of $0.27. This break, supported by a massive increase in volumes, triggered significant liquidations in the derivatives market. Data shows nearly $23.79 million in long positions liquidated against $12.28 million for shorts, proving the asset’s strong volatility.

If buyers manage to maintain the price above the immediate support of $0.27, a new rally toward the $0.33 zone is conceivable. The liquidation map indicates numerous shorts to be liquidated between $0.33 and $0.4.

Conversely, if selling pressure from whales intensifies, a rapid correction could bring the price back to its lower support levels, around $0.26. The lack of widespread optimism suggests this rebound could be just a flash in the pan before another severe retracement.

How far can Cardano (ADA) price go?

Cardano’s current situation perfectly illustrates the crypto market paradox: a spectacular price increase that masks underlying fragility. While ADA’s market capitalization barely maintains its lead over emerging competitors like Hyperliquid (HYPE), the battle between retail buyers and whales promises to be decisive.

To validate a genuine bull run, Cardano must imperatively transform the resistance at $0.3 into solid support and reverse the bearish sentiment weighing on its ecosystem. If it maintains $0.3 as support, a rise toward $0.5 becomes possible. The coming days will be crucial in determining whether this 10% increase marks the beginning of a sustainable trend or if it’s simply a bull trap orchestrated by large wallets.

Investors will need to closely monitor on-chain data, as well as the evolution of the RSI and MACD, to anticipate the next major move. In this context of technical and fundamental uncertainty, one question burns on traders’ lips: is this the right time to accumulate Cardano before another explosive upward move?

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