Cardano has avoided a collapse, and now it seems to be making a leap

The price of Cardano has fallen by about 10% in the last seven days. Despite the wider correction, ADA managed to stay above the lower trend line of a pattern considered positive. This only shows that buyers are defending the structure rather than allowing the downtrend to accelerate.

The question now is whether this support, and the signs of a return of major wallet interest, can help the ADA achieve a short-term recovery.

Sponsored

Sponsored

The support of big money helps the ADA to maintain its structure

The ADA has moved into a falling wedge For weeks, staying comfortably above the lower link is important because this pattern often results in short-term upward moves.

Staying above this line indicates that buyers are still interested in defending the trend, even in periods of weakness. The line was tested briefly on November 4.

Chain Fund Flow (CMF), which tracks whether large portfolios add or remove capital, appears to be on the rise again. CMF has fallen towards its downtrend line in recent sessions.

However, it stayed above, avoiding a major currency collapse. He is risen now.

Sponsored

Sponsored

Want more icon insights like these? Subscribe to Harsh Notariya’s daily newsletter here.

This signal indicates new flows of larger shareholders, which often appear before recovery attempts. Cardano holding its wedge support and CMF rising at the same time gives ADA its first real sign of strength in weeks.

Short positions dominate and create a squeeze setup

If you pay The price of Cardano will increasethe derivatives market can strengthen the movement. In Gate’s ADA-USDT liquidation chart alone, the short exposure is $93.15 million, while the long exposure is only $24.46 million. The shorts keep a movement of about four times the long bets.

Sponsored

Sponsored

A squeeze becomes possible when the price rises enough to force traders to close short trades. In the case of ADA, you need a move of about 2% to start hitting the first big batch of short trade liquidations, which starts at $0.51.

If the chart pushes slightly above current levels, a reversal trend may begin, which often accelerates into a much larger move.

This is the basic setup: The wedge protects ADA from a collapse, the CMF indicator shows that large portfolios are coming back, and a heavy market in short positions gives ADA enough fuel for a quick rebound if the momentum changes.

Sponsored

Sponsored

Cardano price needs a small push to confirm the rebound

The ADA only needs a small increase of about 2% to trigger short trade settlements. This means that the first obstacle for the price of Cardano is at $0.51. When the chain reaction starts, the price can… ADA for resurrection Quickly through neighboring clusters.

If momentum continues after this, ADA will need to break above the wider resistance zone near the top of the wedge. Finishing around $0.64 is the point where the recovery transitions into an attempt at full recovery. Only then does the structure change, allowing a deeper assembly.

Champions falls below $0.49. Missing this level breaks the wedge, which is generally weak considering that it only has two clear points to touch.