Cardano (ADA) Price Prediction For February 23

Cardano (ADA) recently witnessed an impressive recovery of nearly 4%. However, the price now seems to be moving toward a retest of the ascending trendline support. This decline is driven by bearish market sentiment and the recent heist experienced by Bybit.

Cardano (ADA) Current Momentum 

As the ADA price nears the support level, it becomes crucial to see whether the asset will hold this level. If the market does not experience a massive sell-off, the price may stabilize. However, if selling pressure increases, the market will likely continue this trend until sentiment shifts.

ADA Technical Analysis and Upcoming Levels

According to expert technical analysis, ADA still holds its upside potential as long as it trades above the ascending trendline or the $0.73 mark. Looking at the daily and four-hour time frames, ADA appears to be forming a bullish cup-and-handle pattern along with an ascending triangle pattern, reinforcing its bullish outlook.

Based on recent price action, ADA could soon hit the $0.85 level once it crosses the $0.78 mark. However, given the current market sentiment, if ADA falls and closes a four-hour candle below the $0.74 level, we could witness a heavy sell-off and a notable 10% price drop, bringing it down to the $0.65 level.

As of now, the asset is trading below the 200 Exponential Moving Average (EMA) on the four-hour time frame, indicating that it is still in a downtrend. Meanwhile, its Average Directional Index (ADX) stands at 12, suggesting weak trend strength, which could be a key reason why ADA has failed to rally.

Current Price Momentum and Over-Leveraged Levels 

Looking at the current market sentiment, intraday traders are over-leveraged at the $0.76 level on the long side, with $2.23 million worth of long positions. Meanwhile, the $0.785 level is another over-leveraged zone where traders betting on the short side have built $2 million worth of short positions.

Examining these over-leveraged positions, it appears that bulls are dominating, which could help ADA’s price stay above the crucial trendline.

ADA is currently trading near $0.77 and has experienced a modest 0.50% price surge in the past 24 hours. However, during the same period, its trading volume dropped by 50%, indicating fear among traders and investors, leading to lower participation compared to the previous day.

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