Cardano Faces Key Resistance at $0.3968 as Longs Suffer Heavy Liquidations

Published: 2026-01-01 14:29:25 |

Cardano (ADA) opened the new year under renewed bearish pressure, trading near $0.33–$0.35 with increased volatility and a 37% rise in 24-hour volume. Short-to-medium technicals are negative: 7-/14-/30-day returns show declines (~5.1%, ~7.1%, ~12.7%), the daily Supertrend is bearish with resistance at $0.3968, and the Chande Momentum Oscillator reads -26.63, indicating weak momentum. Immediate support sits at $0.33, with a deeper support zone near $0.30 if that level gives way. Liquidation data show concentrated long-liquidations across multiple intervals — $20.58K (1h, all longs), $141.79K (4h), $171.73K (12h) and a sharp $3.91M in 24h (mostly longs) — signalling recent forced selling pressure. Earlier coverage noted a broader downtrend and a Supertrend resistance band near $0.41–$0.42 and suggested a break below $0.34 could open targets toward ~$0.33. Traders should watch two triggers: a decisive close above the $0.3968 Supertrend to confirm a trend reversal and rebuild buying pressure, or a decisive break below $0.33 (or $0.30) to increase short-term downside risk. This report is informational and not financial advice.

Bearish

The combined reports point to continued bearish pressure on ADA. Technical indicators (daily Supertrend bearish, negative momentum readings) and declining multi-period returns signal a short-to-medium-term downtrend. Concentrated long-liquidations — especially the large $3.91M in 24h predominantly affecting longs — indicate forced selling that can accelerate downside and increase volatility. Immediate support at $0.33 is the key short-term risk level: holding it could allow consolidation, but a decisive break would likely open a move toward $0.30 and invite further selling. Conversely, a sustained close above the $0.3968 Supertrend resistance is required to shift market structure toward bullishness; absent that breakout, the news implies continued downside pressure. Therefore, the near-term price impact on ADA is likely bearish.