ADA Gains 2% Near $0.63, Bulls Return as Traders Bet on Long Positions

As of March 1, 2025, Cardano (ADA) has gained 2% and is trading near $0.63, fluctuating within a tight range between $0.625 and $0.64. Despite this modest upside momentum, ADA remains below its key resistance level of $0.65, indicating a bearish trend.

Over the past 24 hours, ADA attempted to rally but failed to gain traction, continuing to trade below the critical $0.65 level. However, if the asset breaks out of its ongoing consolidation and closes four consecutive candles above $0.6425, there is a strong possibility it could soar by 5.50%, reaching the $0.67 level.

On the other hand, if the asset fails to breach the upper boundary of consolidation and closes a daily candle below the $0.62 mark, ADA could see a 7% price drop to $0.58, with the potential for further decline.

Looking at the current market sentiment, it appears that bulls are returning to support the asset. On-chain analytics firm Coinglass reports that traders and investors have been engaging in bullish activity. Data from Coinglass reveals that ADA traders betting on long positions are over-leveraged at $0.618, holding $5.90 million worth of long positions. Meanwhile, $0.645 is another over-leveraged level, where traders betting on short positions have built $3.67 million worth of positions.

When combining these on-chain metrics, it appears that a shift in market sentiment has begun. This notable participation on the bullish side could push ADA in an upward direction.

Meanwhile, investors and long-term holders have been accumulating tokens during the same period, as reported by Coinglass. Data from spot inflow/outflow reveals that exchanges have witnessed a significant outflow of $14.65 million worth of ADA tokens. When examining these on-chain metrics alongside technical analysis, it appears that investors and traders are driving the asset toward a rally, aiming to regain the crucial $0.65 level.