ADA Plunges 25%, Bulls Accumulate Amidst Volatility

Cardano (ADA) Price Prediction for March 4

ADA, the native token of the Cardano blockchain, has experienced significant volatility over the past 48 hours, leading to millions of dollars in liquidations, according to on-chain analytics firm Coinglass. A total of $40.80 million worth of ADA positions were liquidated in the last 24 hours, with $30 million coming from the long side and $11 million from the short side.

As a result of this price fluctuation, ADA has recorded a 25% price drop in the past 24 hours and is currently trading near $0.81. The trading volume has also dropped by 30%, indicating lower participation from traders and investors compared to previous days.

With the notable price drop, ADA has reached a crucial support level of $0.80. According to expert technical analysis, this support level was previously broken during the recent upside rally. Based on recent price action and historical patterns, if the asset holds this level, there is a strong possibility it could soar by 35% to reach $1.14. However, if the asset fails to hold this level, it could decline by 20% to $0.65 in the coming days.

Despite market uncertainty, investors and long-term holders appear to be accumulating the token, according to on-chain analytics firm Coinglass. Data from spot inflow/outflow reveals that exchanges have witnessed an outflow of over $110 million worth of ADA tokens in the past 48 hours, indicating that bulls are strongly accumulating the token for the long-term holders.