Cardano, the blockchain platform often touted for its scientific rigor and methodical development, has just weathered a challenging week in the cryptocurrency markets. According to BeInCrypto, the price of Cardano’s ADA token dipped approximately 10% over the seven days preceding November 17, 2025. That’s a notable slide, especially in a market where volatility is the norm but every percentage point still matters.
Yet, despite the correction, ADA’s price action is showing signs of resilience. Rather than tumbling through key support levels and accelerating into a deeper downtrend, ADA has managed to stay above the lower trend line of a bullish technical pattern known as a falling wedge. For technical analysts and traders, that’s a big deal. It means that—at least for now—buyers are stepping in to defend the structure, preventing a breakdown that could have sent the token spiraling even further.
“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,” reported BeInCrypto. The question on everyone’s mind: can this support, combined with other emerging signals, help ADA stage a short-term bounce?
Let’s break down the situation. For several weeks, ADA has been moving inside this falling wedge—a chart pattern that, in the world of technical analysis, often precedes short-lived upward moves. The lower boundary of the wedge was briefly tested on November 4, 2025, but the price rebounded, holding above the line. This isn’t just textbook behavior; it’s a signal that market participants still care about defending the trend, even when things look shaky.
But the technical picture isn’t the only thing worth watching. The Chaikin Money Flow (CMF) indicator, which tracks whether large wallets—think whales and institutional players—are adding or removing capital, has provided another clue. The CMF had been drifting lower toward its own descending trend line over the past few sessions. Yet, according to BeInCrypto, it stayed above that critical line, avoiding a major breakdown. Even more encouraging for bulls, it has now curled upward again. That’s a classic sign of renewed inflows from larger holders, which often appear before a rebound attempt.
“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,” BeInCrypto noted. For those who follow money flows, this is the first real sign of strength in weeks.
So, what does this mean for ADA’s immediate future? The answer may lie in the derivatives market. On Gate’s ADA-USDT liquidation map, short exposure is a hefty $93.15 million, while long exposure is just $24.46 million. That’s nearly four times as much leverage held by shorts compared to longs. In plain English: a lot of traders are betting against ADA, and they’re doing so with significant borrowed funds.
This lopsided positioning sets the stage for what traders call a “short squeeze.” Here’s how it works: if ADA’s price rises just enough, it could force some of those short sellers to close their positions (by buying ADA), which in turn pushes the price even higher, causing more shorts to cover, and so on. It can be a rapid, self-reinforcing cycle.
According to BeInCrypto, “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.”
In other words, ADA doesn’t need a dramatic rally to get the ball rolling. Just a modest gain of about 2%—enough to push the price to $0.51—could trigger the first wave of short liquidations. Once that chain reaction starts, the price can climb quickly through nearby resistance levels, as more shorts are forced to buy back their positions to limit losses.
But what happens after that? If momentum continues, ADA would need to break above the wider resistance zone near the top of the wedge—around $0.64, according to BeInCrypto. Only then would the bounce transition into a full-fledged breakout attempt. That’s the point where the structure shifts, and a deeper rally becomes possible. Until then, the move remains a short-term bounce within the confines of the broader pattern.
Of course, there’s always a risk of invalidation. If ADA loses support and falls below $0.49, the wedge pattern breaks down. “Invalidation sits below $0.49. Losing that level breaks the wedge, which is anyway weak considering it only has two clear touchpoints,” BeInCrypto cautioned. In that case, the bullish setup would unravel, and further downside could be in store.
For Cardano, these technical and market dynamics come at a time when the broader cryptocurrency space is grappling with uncertainty. Bitcoin, Ethereum, and other major tokens have seen their own share of volatility, often driven by macroeconomic headlines, regulatory developments, and shifting investor sentiment. In this context, ADA’s ability to hold key support levels and attract renewed interest from big wallets stands out.
It’s also worth noting that Cardano’s community has long prided itself on patience and long-term vision. The project, led by Charles Hoskinson, has often taken a slower but more methodical approach to upgrades and ecosystem growth. While that can sometimes mean missing out on hype-fueled rallies, it also means that ADA holders are used to waiting for technical setups to play out rather than chasing every market move.
Still, for traders and investors watching the charts, the next few days could prove pivotal. Will the combination of technical support, renewed big-wallet inflows, and a short-heavy derivatives market be enough to spark a bounce—or even a breakout? Or will ADA falter, breaking down below key levels and dashing hopes for a near-term recovery?
One thing’s for sure: the stage is set for a decisive move. Whether ADA can capitalize on the opportunity remains to be seen, but the ingredients for a squeeze—and perhaps something more—are all there. As always in crypto, fortunes can shift in the blink of an eye, and Cardano’s next act is about to unfold.
