The ADA currency experienced a turbulent period coinciding with the launch of NIGHT, at a time when investors were facing strong pressures and accumulated losses, making the event closer to an excessive buying wave that did not succeed in changing the overall market trend.
✦ About a week before the NIGHT event on December 8, the price of ADA began to move up from the 0.37 area, achieving a notable jump of more than thirty percent in just one day, reaching a peak of 0.484.
However, this momentum did not last, as buyers failed to maintain positive pressure.
⬤ The inability of the price to reclaim the long-standing resistance level near 0.52 revealed that the rise was temporary, and buying strength was insufficient to confirm a stable upward trend.
⬇ Technical signals lean towards downward ⬇
On the daily timeframe, the level 0.405 is in a critical position with increasing seller pressure.
▪ Any daily close below this level may indicate a shift in market structure to a clear downward path.
◉ Below, the level 0.37 stands out as another key support, and breaking it may open the door for a new and deeper downward wave.
📉 Capital flow indicators showed a return of selling pressure, as values slipped below the negative territory, with a notable outflow of capital since the previous crash.
✧ Collectively, the daily indicators reflect continued negative control over price movement.
⬆ Optimistic view: Is there a chance of a rebound? ⬆
🔍 Liquidation data over the last month indicates a buildup of short positions above the last peak near 0.48.
This area may act as a price magnet, opening the door for a potential sudden bullish rebound as seen previously.
⚠ Conversely, weak liquidation activity is observed between 0.4 and 0.5, with a potential resistance area between 0.43 and 0.44 that may slow any rapid ascent.
⚠ Message to traders: Caution is necessary ⚠
📊 The daily price action shows limited upward attempts, yet technical indicators and overall volatility did not support a continuation of the rise.
❖ The rise stopped near 0.48 without holding above 0.45 or even 0.43, reflecting a clear lack of buying demand.
➡ Therefore, it is advised to monitor any clear break below 0.405, as this level may later turn into resistance, providing a suitable opportunity to deal with a potential downward wave.
✦ Summary ✦
The overall trend remains downward, and the current phase requires precise risk management, especially with diminishing positive momentum and a lack of supporting technical confirmations for an upward trend.
