TLDR
- Cardano breaks major descending trendline with golden cross formation signaling bullish momentum shift
- Over $90M in short positions vulnerable above $0.97, setting up potential squeeze scenario
- Openbank integration brings Cardano to 2 million European customers under Santander
- Key support at $0.85-$0.87 must hold for bulls to maintain upward trajectory
- Technical targets point to $1.75 if current momentum sustains with volume confirmation
Cardano is trading at $0.876 with $1.28 billion in daily volume as technical indicators align for potential upside. The cryptocurrency has broken above its major descending trendline after multiple failed attempts.
This breakout represents a structural shift in ADA’s price action. The trendline now potentially acts as support rather than resistance for future moves.
ADA has also confirmed a golden cross on its daily chart. The 50-day moving average crossed above the 200-day moving average, a classic bullish signal.
This crossover suggests the market is transitioning from a prolonged downtrend into accumulation phase. The golden cross reinforces the trendline breakout, showing buyers regaining control.
Short Squeeze Potential Builds
Liquidation data reveals over $90 million in short positions vulnerable above $0.97. At current levels, sellers maintain control but the clustering suggests risk.
Any sharp move higher could trigger rapid acceleration as shorts scramble to cover. This would provide the liquidity needed to propel ADA toward higher targets.
The combination of technical breakouts and short squeeze potential creates a favorable setup. If buyers can absorb selling pressure, it could catalyze stronger continuation.
Technical analysis from Gordon projects upside to the 0.786 retracement level near $1.75. This gives traders a clear roadmap for potential price movement.
Fundamental Developments Support Bulls
Europe’s largest digital bank Openbank integrated Cardano for 2 million customers. This development under Santander boosts institutional adoption narratives.
The integration provides longer-term bullish catalyst despite short-term headwinds. Institutional interest continues growing for the blockchain platform.
However, on-chain data shows profit-taking pressure building. Network Realized Profit/Loss hit its highest level since July as investors cash out gains.
Exchange data reveals $6.7 million net outflows on September 17. This reflects investor caution in the current environment.
The RSI sits at 44, suggesting sellers have room to push lower. ADA struggles beneath the 50-EMA at $0.8819 currently.
Critical support lies between $0.85-$0.87 after repeated successful tests. This zone has formed a higher low pattern on the charts.
If support fails, downside targets include $0.8264 and $0.8033. However, reclaiming $0.8843 would signal first signs of strength returning.
Conservative bulls wait for breakout above $0.90 to confirm momentum. Aggressive bears may short below $0.8528 if support cracks.
Cardano Price Prediction
The technical setup favors bulls despite mixed sentiment. Trendline breakout combined with golden cross formation points to improving momentum structure.
Short squeeze potential above $0.97 adds fuel for acceleration if triggered. The $0.85-$0.87 support zone remains critical for maintaining bullish outlook.
Successful defense of this level opens path toward $1 psychological resistance. From there, the measured move targets Gordon’s $1.75 projection.
