"ADA's Critical Crossroads: $0.65 Hinge for 25% Surge or 30% Drop"

Cardano's [ADA] next move hinges on a critical price level, as indicated by recent market dynamics and on-chain metrics. The cryptocurrency has experienced a significant price drop in the past 24 hours, declining by 13% to reach a crucial support level. This decline has sparked increased interest from traders and investors, leading to a notable surge in trading volume.

At the time of this analysis, ADA was trading near $0.665, with a 90% increase in trading volume over the past 24 hours. However, this spike in trading volume does not necessarily signal a price rally. Such increases typically occur when an asset breaks out or breaks down from a price pattern, prompting traders and investors to either liquidate their open positions or offload holdings for profit booking.

Technical analysis suggests that ADA is forming a bullish double-bottom pattern on the daily timeframe. The recent price drop has pushed the asset to a crucial support level of $0.65, which has a strong history of price reversals. This bullish outlook is further reinforced by the fact that ADA's technical indicators have flashed a bullish divergence, signaling significant upside potential.

Based on historical price momentum, if ADA holds above the $0.65 level, there is a strong possibility it could soar by 25% to reach $0.85 in the future. Conversely, if ADA breaches the $0.65 level, it could drop by 30% to reach $0.45.

Despite the continuous price drop, long-term holders appear to be accumulating ADA tokens and following price action. On-chain analytics firm Coinglass reported that exchanges have witnessed an outflow of over $8 million worth of ADA tokens in the past 24 hours. In a market condition where prices continue to decline, exchange outflows indicate potential accumulation, which can create buying pressure and drive further upside momentum.

Meanwhile, intraday traders appear to be following the current market sentiment, betting on the short side. On-chain analytics firm Coinglass reported that short positions dominate, while long traders seem to be exhausted. The major liquidation levels are at $0.634 on the lower side and $0.708 on the upper side, with traders being over-leveraged at these levels. If market sentiment remains unchanged and the