- ADA faces strong resistance at $0.583 as sellers reject early bullish breakout.
- Technical indicators show weak momentum with bearish MACD and sub-50 RSI.
- Long liquidations dominate, with $622K wiped as bullish traders misjudge support.
Cardano (ADA) has entered a challenging phase in its short-term market outlook. On July 8, ADA’s price slipped to $0.5757, reflecting a 1.55% decline in the last 24 hours. The digital asset experienced a brief early rally, reaching highs near $0.587, before sellers took control and pushed the price down.
This downward movement now places ADA at a critical juncture. The inability to stay above key resistance zones suggests mounting bearish sentiment in the market, with traders becoming increasingly cautious amid strong selling pressure.
Strong Selling Pressure Dominates
Throughout the day, ADA struggled to maintain its momentum. Early gains quickly faded as the price fell below the opening level of $0.5839. The resistance zone around $0.583–$0.584, once a support area, has now turned into a ceiling that ADA cannot break. The latest peak at $0.587 further confirms this shift, as buyers failed to hold that level.
Consequently, support is forming near the $0.575 range, where some consolidation has occurred. ADA found temporary footing at $0.572, marking the intraday low. However, given the broader downtrend, these support levels remain fragile. Unless there is a reversal, the price could revisit or even break below this floor.
Market Indicators Signal Weak Momentum
Technical indicators highlight a weakening trend. The MACD remains in bearish territory, with the MACD line sitting below both the signal line and zero. This setup indicates poor momentum and continued downward bias. There is also no strong divergence at present, meaning a reversal may not be imminent.
In addition, the RSI stands at 44.59, slightly below the neutral 50 mark. While it is not yet oversold, it does reflect bearish leanings. Should the RSI fall below 30, it could suggest a potential bounce. For now, though, sellers remain in control.
Liquidation Data Shows Longs Getting Hit
Perpetual contract data shows that $664,000 in ADA positions were liquidated in the past 24 hours. Significantly, over $622,000 of these were long positions, indicating a failed attempt to catch a bottom.
Short liquidations were minimal, at just $41,500. Exchanges like Bybit and Binance reported the largest liquidation volumes, underscoring the heavy pressure on bullish traders.
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