Cardano price has fallen by about 10% in the past seven days. Despite the widening correction, ADA managed to hold above the lower trend line of the bullish pattern. This alone shows that buyers are defending the structure rather than accelerating the downtrend.
The question now is whether this support, plus signs of returning interest from high-value wallets, will help ADA weather the short-term pullback.
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Significant financial support contributes to maintaining the structure of ADA
ADA has been stuck inside a descending wedge for several weeks now, and this pattern often leads to short-term gains, so it’s important to keep the lower bound comfortably above.
A break above this line indicates that buyers are still interested in following the trend, even during downturns. This line was briefly tested on November 4th.
Chaikin Money Flow (CMF), which tracks whether large wallets are adding or removing capital, appears to be on the rise again. CMF had been falling towards the downtrend line for the past few sessions.
Even so, they maintained a level above that and avoided a major financial collapse. Now it’s curled upwards again.
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This suggests fresh inflows from large holders, which often appears before a rebound is attempted. ADA is showing signs of real strength for the first time in weeks, as Cardano maintains wedge support and CMF turns upward at the same time.
Short positions are dominant and create squeeze setups
If Cardano’s price rises, the derivatives market could amplify the move. The gate’s ADA-USDT liquidation map alone has short exposure of $93.15 million, but long exposure of only $24.46 million. Shorts hold almost 4x the leverage of longs.
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A squeeze is possible when the price rises enough to force the short to close. For ADA, it would take about a 2% move to start reaching the first big batch of short-term liquidations starting at $0.51.
If the chart moves slightly above the current level, an unwind can begin, often accelerating into an even larger move.
This is the core setup. The wedge protects ADA from collapse, the CMF signals that large wallets are coming back, and the short-heavy market gives ADA enough fuel to rebound quickly if momentum changes.
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Cardano price needs a little push to see a rebound
ADA only needs about a 2% profit to start short-term liquidation. This means that Cardano’s first price hurdle is at $0.51. Once a chain reaction begins, the price of ADA can rapidly increase through neighboring clusters.
If momentum continues after that, ADA will have to break through a wider zone of resistance near the top of the wedge. A clearing around $0.64 will be the point where the bounce transitions into a full breakout attempt. Only then will the structure change and deeper rallies become possible.
Deactivation stays under $0.49. Losing that level breaks the wedge, which is weak anyway considering there are only two clear touchpoints.
