"Cardano's $4.66M at Risk: ADA Struggles to Rebound Amidst Bearish Bets"

Cardano's recent price performance has raised concerns among traders, with the asset failing to sustain a meaningful recovery despite oversold conditions. The market conditions suggest that an immediate rebound is uncertain, with sellers maintaining control. Investors remain cautious as Cardano struggles to reclaim key resistance levels.

According to the liquidation map, over $4.66 million worth of ADA is at risk of liquidation if the price rebounds toward the $0.77 resistance. This indicates that bearish traders have aggressively bet on further declines, driving the funding rate negative and suggesting strong short interest and hesitation among bullish investors. However, broader market sentiment does not entirely align with this bearish outlook, leaving room for a potential shift in buying momentum that could trigger a wave of short liquidations.

Technical indicators suggest that Cardano is experiencing extreme selling pressure, with the Relative Strength Index (RSI) now in the oversold zone. This marks the first instance in six months where ADA has reached this level, typically signaling that bearish momentum is nearing exhaustion. Historically, such conditions have led to minor recoveries. However, Cardano has repeatedly demonstrated that an oversold RSI does not necessarily translate into significant price rallies. While some assets bounce back sharply after hitting oversold territory, ADA has struggled to capitalize on these moments, making expectations of a rapid recovery speculative unless broader market conditions improve substantially.

Cardano's price has dropped by 25% over the past week, now trading at $0.71. The asset found support at $0.70, preventing further downside for now. However, the absence of strong bullish momentum raises concerns about ADA's ability to recover in the near term. With the previously established bullish falling wedge pattern now invalidated, ADA may struggle to post any significant gains. Given current market conditions, the price is likely to remain range-bound between $0.70 and $0.77. Until a breakout occurs, traders should expect continued consolidation within this zone.

A decisive move above $0.77 could shift momentum in favor of buyers. If ADA flips this resistance into support, a short squeeze may follow, triggering liquidations and fueling a potential rally to $0.85. However, a rally to $1.00 is far away since, without this breakout, upside potential remains limited, and Cardano could stay trapped in