Is the Bottom in or Is More Downside Toward $0.24 Ahead?

Cardano shows signs of a potential bottom, but resistance remains, and further downside toward key support could occur.

Cardano (ADA) is changing hands at $0.2858, with a 2.87% increase over the last 24 hours, showing signs of a slight recovery after recent losses. The price chart reveals volatility, with ADA initially trading lower before picking up strength, climbing above $0.28. 

Despite this recent uptick, Cardano is still significantly down over the past few weeks, which reflects the broader market struggles. 24-hour trading volume stands at $67.19 million in spot trading, and the futures volume has significantly higher activity at $657.28 million.

Over the last 30 days, ADA has dropped by 27.83%, reflecting longer-term bearish market sentiment. The 90-day decline is even more pronounced at 39.72%, while 180-day performance shows a severe drop of 67.50%, highlighting the overall downtrend.

However, the short-term gain provides some optimism, suggesting that ADA could have found a bottom. Has Cardano found a bottom, or is this a relief rally?

Has Cardano Found a Bottom?

On the daily chart, Cardano is facing resistance around the $0.29 level, with a key support zone at $0.2386, marked by the Parabolic SAR indicator. The SAR has shifted below the price action, indicating a bottom may have been found. However, the price has yet to decisively break above the $0.29 resistance, which is preventing any sustained rally.

Looking at the Awesome Oscillator, the indicator currently shows a value of -0.03531, with the bars transitioning from red to green.

Although the AO is still negative, the shift towards green suggests that the downward momentum may be weakening, and a potential bullish crossover could occur if the bars continue to expand upward. This could signal that ADA is poised for a reversal, especially if it successfully breaks the $0.29 resistance.

However, if the Parabolic SAR level breaks down, ADA could test lower support near $0.22. On the flip side, breaking the $0.29 resistance could signal a move toward $0.30, with additional resistance at $0.32.

Cardano Total Liquidations

Meanwhile, Cardano has seen a significant amount of liquidations, with total liquidations reaching $167.46 million in shorts and $608.13 million in long positions on February 16. Binance, one of the largest exchanges, shows a large short liquidation of $84.05K, along with a larger long liquidation of $193.17K.

This indicates that long traders were facing pressure on Monday. Bybit also recorded significant activity, with $18.14K in short liquidations and $155.24K in long liquidations, reinforcing the bullish sentiment despite some pullbacks. Meanwhile, OKX has reported a $25.99K short liquidation and a $165.35K long liquidation.