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Cardano’s Next Move: Bear Trap or 2021-Style Breakout?
The cryptocurrency market is once again gripped with uncertainty and speculation following the recent 72% surge in Cardano’s ADA, only to see it retrace back down to $0.70. This dramatic price action has left many investors questioning whether this pullback signals weakness or a setup for a massive breakout.
The situation bears striking similarities to the 2021 bull run, where ADA initially plummeted by 52% before consolidating and then erupting in an explosive rally. Market participants are now debating whether history will repeat itself or if we are witnessing a bear trap.
On-chain data suggests that mid-term holders are moving funds, often a sign of early-stage distribution or accumulation. This movement is not unlike the trend seen leading up to the 2021 breakout. Moreover, sell-side liquidity continues to be absorbed, which could lead to a squeeze and potentially send prices soaring if short-sellers become trapped.
The coming days will be crucial in determining the direction ADA takes next. If investors continue to accumulate and momentum builds, it’s possible we may see another 2021-style breakout. However, if bearish pressure persists, the possibility of a bear trap cannot be ruled out.
In either case, one thing is certain – the next few days will be crucial in deciding the future trajectory of Cardano’s ADA.
