The Key Takeaways
ADA dropped 12% and held on to key support. The traders, with 80% of longs and $6 Million inflows, weighed the reversal hope against the looming risks.
In the past 48-hours, prices have fallen by 12%. Cardano [ADA] The altcoin reached an important support level that seemed to make or break the coin.
Naturally, traders renewed their interest, given ADA’s previous reactions to this zone.
Nearly 80 percent of people bet on the long side. Intelligent or reckless?
ADA was trading at $0.8565 as of press time. This is a drop of more than 9% in the last 24 hours. The price drop triggered increased trading activity, with a surge of 22% in volume.
This zone is a popular entry point for many traders.
As per CoinGlassThis ratio stood at 3,99. This ratio suggests that, for every 3.99 positions long, there’s a single position short, which means the traders betting long are almost four times more than those beting short.
Further, the data showed that 79.96% accounts were long while 20.04 % were short.
CoinGlass
Cardano could have fallen further. Was the optimism justified?
Trendline lifeline! Can ADA stand firm?
Technical analysis by AMBCrypto revealed that the traders’ current bullishness is most likely due to the support zone.
Since early August 2025, ADA has been following an upward trendline on the 4-hour chart. Altcoins have been retouching this line with their latest drop, which naturally fuels hopes that the trend will reverse.
TradingView
According to the price movement, ADA holding above the ascending tendencyline has a high probability of a dramatic price reversal. The altcoin would then soar 14% higher to the next level of resistance at $0.9791.
While momentum was still strong, another 20% surge to $1.20 is possible if it continues through the $1.20 barrier.
At the time of publication, ADA’s Supertrend indicator was red and hovered over the price. This indicates that the altcoin has a strong downtrend and is under heavy selling pressure.
Relative Strength Index (RSI), which is a measure of relative strength, printed 39.97. It was close to the oversold zone and hinted at a potential reversal.
ADA sale of $6 million concern
Despite the bullish forecast, the inflows of ADA to exchanges still raises a warning.
In the last 24 hours alone, $5.95 Million worth of ADA tokens have been traded on exchanges. This suggests that there is a continuing dumping and profit-taking.
CoinGlass
These inflows could add to the downside pressure by increasing selling pressure.
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Source: ambcrypto.com
