Cardano (ADA) has reentered the spotlight with a dramatic 75% surge in 24-hour trading volume, now reaching $1.15 billion. This sudden spike in market activity reflects renewed investor interest and a broader shift in cryptocurrency market dynamics. As ADA climbs toward key technical resistance levels, traders are closely watching for signs of sustained bullish momentum—especially after the formation of a "golden cross" on its hourly chart.
The rally didn’t occur in isolation. It coincided with widespread short liquidations across the crypto market, helping ease selling pressure and paving the way for a broader rebound. With Bitcoin (BTC) hitting a three-week high, momentum spilled over into major altcoins like Cardano, reigniting optimism among traders and long-term holders alike.
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Surge in Trading Volume Signals Growing Confidence
According to CoinMarketCap, Cardano’s trading volume jumped to $1.15 billion within 24 hours—a clear indicator of heightened market participation. This surge in volume often precedes significant price movements, especially when aligned with strong technical patterns.
Increased volume suggests that more traders are entering positions, either through new longs or forced short covering. In this case, the latter played a crucial role. As prices began to rise, leveraged short positions—bets that ADA would fall—were rapidly liquidated, amplifying upward momentum.
Such volume spikes are particularly meaningful when they follow extended consolidation periods. For Cardano, this surge comes after a challenging June, during which ADA struggled to maintain levels above $0.55. Now, breaking through that resistance could mark the beginning of a new growth phase.
Short Liquidations Fuel Broader Market Recovery
Data from CoinGlass reveals that over $352 million in crypto positions were liquidated in a single session, with 80% being short positions. This wave of forced selling exhaustion is often a precursor to strong bullish reversals.
When too many traders bet against an asset and the price begins to rise unexpectedly, exchanges automatically close those losing positions to prevent further losses—this process triggers additional buying pressure as liquidated positions must be bought back. In Cardano’s case, this dynamic helped propel ADA from $0.538 to an intraday high of $0.611.
Bitcoin’s rally to its highest level in three weeks acted as a catalyst, restoring confidence across the altcoin ecosystem. As BTC stabilized above $60,000, capital began rotating into high-potential projects like Cardano, known for its strong fundamentals and active development roadmap.
Price Rebounds 8%—Key Resistance Levels in Sight
Over the past 24 hours, Cardano climbed approximately 8%, reaching $0.601. This recovery marks a significant psychological win for bulls who had watched ADA dip below $0.54 earlier in the week.
More importantly, the price rebound has allowed ADA to reclaim critical technical ground:
- Break above $0.55: A key psychological and technical threshold.
- Rejection at $0.611: Indicates initial resistance but also strong buying interest.
- Highest level since June 19: Shows improving market structure.
As one of the top 10 cryptocurrencies by market capitalization, Cardano’s performance is closely watched by institutional and retail investors alike. Its recent resilience suggests growing confidence in its long-term value proposition—especially given ongoing upgrades to its smart contract capabilities and ecosystem expansion.
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Golden Cross Formation Hints at Sustained Bull Run
A major technical development has emerged on Cardano’s hourly chart: the formation of a golden cross.
This occurs when the 50-period moving average crosses above the 200-period moving average—a pattern widely interpreted as a bullish signal. Historically, golden crosses have preceded strong upward trends in both traditional and digital markets.
For ADA holders, this could mean much more than a short-term bounce:
- A sustained move above $0.61** could open the path to **$0.663, the current level of the 50-day simple moving average (SMA).
- A breakout beyond both the 50-day and 200-day SMAs ($0.663 and $0.765) would confirm a full trend reversal.
- Such a move could attract algorithmic and institutional buyers who rely on technical triggers.
Technical indicators like the Relative Strength Index (RSI) also show ADA is gaining strength without yet entering overbought territory—suggesting room for further upside if buying pressure continues.
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Potential Risks: Support Levels to Watch
Despite the bullish signals, downside risks remain. If momentum fades and selling pressure returns, key support levels will be put to the test.
The most critical threshold is $0.50**. A drop below $0.54 could accelerate losses, especially if market sentiment turns negative again. Should ADA break below $0.50, it may complete a bearish descending triangle pattern—potentially pushing prices down to **$0.40.
Traders should monitor:
- Volume sustainability
- BTC’s price action (as a market leader)
- On-chain activity (e.g., wallet inflows/outflows)
Bulls will likely defend the $0.50 level aggressively, as losing it could damage long-term confidence in the asset.
Frequently Asked Questions (FAQ)
Q: What is a golden cross in cryptocurrency trading?
A: A golden cross occurs when a short-term moving average (like the 50-day) crosses above a long-term moving average (like the 200-day). It’s considered a strong bullish signal indicating potential long-term price growth.
Q: Why did Cardano’s trading volume increase so sharply?
A: The surge was driven by increased buying activity and widespread liquidation of short positions. As prices rose, leveraged short sellers were forced to close their positions, adding fuel to the rally.
Q: What is the significance of $352 million in liquidations?
A: Large-scale liquidations—especially of short positions—often mark turning points in crypto markets. They reduce selling pressure and can trigger rapid price rebounds as traders rush to re-enter positions.
Q: Can Cardano reach $0.70 or higher?
A: Yes—if ADA sustains momentum above $0.61 and breaks through the 50-day SMA at $0.663, the next target could be $0.765 (the 200-day SMA), with potential for further gains depending on overall market conditions.
Q: What happens if ADA drops below $0.50?
A: A break below $0.50 could confirm a bearish descending triangle pattern, increasing the risk of a drop toward $0.40. This level is critical for maintaining positive market sentiment.
Q: How does Bitcoin’s performance affect Cardano?
A: Bitcoin often sets the tone for the entire crypto market. When BTC rallies, capital tends to flow into altcoins like ADA. Conversely, a BTC correction can trigger broad sell-offs.
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Final Thoughts: Cautious Optimism Ahead
Cardano’s recent surge—powered by rising volume, short squeezes, and a golden cross formation—signals growing bullish momentum. While challenges remain, particularly around sustaining gains above key resistance levels, the technical outlook is improving.
Investors should remain vigilant, using technical analysis and market sentiment to guide decisions. With upgrades continuing on the Cardano blockchain and ecosystem projects gaining traction, ADA may be well-positioned for stronger performance in the months ahead—if broader market conditions remain supportive.
As always in crypto, timing and risk management are crucial. Whether you're trading or holding long-term, staying informed is your greatest advantage.