Cardano (ADA) has been on a strong run, surging 20% over the last four days and briefly touching the $1 mark for the first time since March 2nd. This recent upward momentum was a reaction to the inclusion of ADA in a new US Crypto Strategic Reserve, but its rally was halted by a market-wide sell-off triggered by higher-than-expected US inflation data.
Despite this recent pullback, data from the derivatives market suggests that bulls are still in control. A Coinglass Liquidation Map shows that long positions worth $194 million are currently active, significantly outweighing the $93 million in short positions. However, a major cluster of short positions, totaling $43 million, has created a significant resistance level at $0.98. This is why ADA's recent rally was capped at $0.97.
Breaking through this $0.98 resistance could trigger a short squeeze, propelling ADA's price quickly toward $1.20. On the other hand, if the price fails to break this barrier, it could retreat to the $0.92 support level. A more significant rejection could see ADA drop to its 20-day Simple Moving Average (SMA) near $0.79, especially if Bitcoin's price continues to show weakness. The current Relative Strength Index (RSI) of 69.7 suggests that ADA is approaching overbought territory, which could indicate a short-term pause or reversal.
August 2025, Cryptoniteuae