Cardano News Today: ADA's $0.90 Make-or-Break Moment: Bulls Target $2 as Shorts Brace for Squeeze

Cardano's ADA is currently trading near $0.873, with technical analysts highlighting the $0.90 resistance level as a pivotal threshold for potential price action. A breakout above this level could trigger a rally toward the $1.50–$2.00 range, according to recent analyses from multiple sources. The descending trendline, tested repeatedly since late 2024, now acts as a critical barrier, with failed attempts to breach it historically followed by sharp declines. Current price consolidation near $0.87 suggests a high-stakes moment for bulls, as a sustained move above $0.90 could validate the long-term bullish case.

Technical indicators further support this scenario. The Relative Strength Index (RSI) has turned higher from neutral territory, while short- and medium-term moving averages show upward curvature, signaling buyer dominance. Analysts note that a clean breakout above $0.90 could transform overhead resistance into support, reducing friction toward the $1.00 psychological level. Additionally, on-chain data reveals consistent active addresses and staking participation, which are often correlated with sustained bullish momentum.

The market structure is further complicated by short-position dynamics. Over $109 million in ADA shorts face liquidation if the price reaches $0.99, with positions concentrated on exchanges like Binance, OKX, and Bybit. A breakout above $0.90 could spark a cascading short squeeze, amplifying upward pressure as forced buying occurs. This scenario aligns with historical patterns where liquidation-driven rallies accelerate price moves beyond initial targets.

Community sentiment remains mixed. While some traders express skepticism based on past failed attempts to break resistance, others view the current setup as the strongest in months. Social media activity reflects heightened interest, though caution persists among those wary of repeated rejections. The key for bulls lies in confirming volume and candlestick patterns that validate the breakout. A decisive close above $0.90 with rising volume would strengthen the case for a $1.50–$2.00 rally.

Immediate support levels are also critical. If ADA fails to break above $0.90, the $0.85–$0.87 range could act as a near-term defense zone. A breakdown below this level might delay the bullish trajectory, extending the base-building phase as sellers test confluence zones near $0.82–$0.80. Conversely, a sustained move above $0.90 would likely trigger a retest of the breakout level as a potential support, reinforcing the $1.00 target.

Analysts emphasize the importance of monitoring both technical and on-chain metrics. Staking participation on Cardano remains robust compared to other proof-of-stake networks, indicating a committed holder base. Additionally, progress on Cardano-based stablecoins and potential ETF developments are cited as potential catalysts. However, these factors are secondary to the immediate price action and liquidity dynamics shaping ADA's near-term outlook.

Source: [1] Cardano ADA Nears $0.90 as Breakout Could Unlock $2 Target (https://www.xt.com/en/blog/post/cardano-ada-nears-0-90-as-breakout-could-unlock-2-target)

[2] Cardano (ADA) Breaks Key Resistance: Bulls Eyeing $0.90 (https://thecurrencyanalytics.com/altcoins/cardano-ada-breaks-key-resistance-bulls-eyeing-0-90-after-impressive-surge-161024)

[3] Cardano Price Can Break $0.90, If These Factors Align (https://www.thecoinrepublic.com/2025/10/04/cardano-price-can-break-0-90-if-these-factors-align/)

[4] Cardano (ADA) Price Nears $0.99 as $100M Shorts Face Liquidation Risk (https://blocknews.com/cardano-ada-price-nears-0-99-as-100m-shorts-face-liquidation-risk/)