Cardano Avoids a Breakdown, Now Looks Ready To ‘Squeeze’ Out A Bounce

The Cardano price has dipped approximately 10% over the past seven days. Despite the wider correction, ADA has managed to stay above the lower trend line of an otherwise bullish pattern. That alone shows buyers are defending the structure instead of letting the downtrend accelerate.

The question now is whether this support, plus signs of returning big-wallet interest, can help ADA squeeze out a short-term bounce.

Big Money Support Helps ADA Hold Its Structure

ADA has been moving inside a falling wedge for weeks, and holding comfortably above the lower boundary is important because this pattern often leads to short-lived upward moves.

Staying above that line indicates that buyers still care about defending the trend, even during periods of weakness. The line was briefly tested on November 4.

The Chaikin Money Flow (CMF), which tracks whether large wallets are adding or removing capital, seems to be rising again. CMF had been drifting lower toward its descending trend line over the past few sessions.

Yet, it stayed above it, avoiding a big money breakdown. It has now curled upward again.

Cardano Whales Still Active: TradingView

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That signals renewed inflows from larger holders, which often appear before rebound attempts. The Cardano holding its wedge support and CMF turning higher at the same time gives ADA its first real sign of strength in weeks.

Short Positions Dominate And Create A Squeeze Setup

If the Cardano price pushes higher, the derivatives market could amplify the move. On Gate’s ADA-USDT liquidation map alone, short exposure is $93.15 million, while long exposure is only $24.46 million. Shorts hold nearly four times the leverage longs do.

Liquidation Map Hints At A Squeeze Setup: Coinglass

A squeeze becomes possible when price rises just enough to force shorts to close. In ADA’s case, it needs roughly a 2% move to start hitting the first big batch of short liquidations, which start at $0.51.

If the chart pushes slightly above current levels, the unwind can begin, which often accelerates into a much larger move.

This is the core setup: the wedge protects ADA from breaking down, CMF shows big wallets are returning, and the short-heavy market gives ADA enough fuel for a fast bounce if momentum shifts.

Cardano Price Needs A Small Push To Confirm A Bounce

ADA needs only a small gain of about 2% to begin triggering short liquidations. That means the first Cardano price hurdle sits at $0.51. Once the chain reaction starts, the ADA price can climb quickly through nearby clusters.

If momentum continues after that, ADA would need a break above the wider resistance zone near the top of the wedge. Clearing around $0.64 is the point where the bounce transitions into a full breakout attempt. Only then does the structure shift, allowing a deeper rally.

Cardano Price Analysis: TradingView

Invalidation sits below $0.49. Losing that level breaks the wedge, which is anyway weak considering it only has two clear touchpoints.

Read the article at BeInCrypto