- ADA price swept liquidity below the prior month low then reclaimed structure near 0.41 on the daily chart
- HTF market structure shift and break of structure formed after strong reaction from demand zone
- Liquidity remains stacked above price with mapped upside levels at 0.61 0.69 and 0.73
Cardano ADA is trading near the $0.4134 level after executing a clear liquidity sweep below the previous month low, a move that coincided with a visible reaction from a defined demand zone on the daily chart. Following several weeks of sustained downside pressure, price behavior shifted as selling momentum weakened and buyers stepped in aggressively, allowing ADA to reclaim short term structure and stabilize above the reaction area.
This sequence places the most recent price action within a broader transition phase rather than an immediate continuation of the prior downtrend. As the liquidity draw completed, the chart recorded a market structure shift followed by a break of structure, signaling that control briefly moved away from sellers after the sweep absorbed remaining downside liquidity.
Price then consolidated above the demand zone instead of revisiting the lows, suggesting that downside expansion paused as the market reassessed direction. At the time shown on the chart, ADA remains positioned above the swept low while holding a narrow range just below overhead liquidity.
Liquidity Levels Above Price Define the Technical Roadmap
Above the current trading range, several clearly defined liquidity zones remain intact and untested, forming the basis for the projected upside path visible on the chart. The nearest of these levels aligns with the previous month’s high around 0.6189, an area that previously acted as resistance before the broader decline accelerated. This level represents the first major draw on liquidity should price sustain its structural recovery.
Beyond that region, additional buy-side liquidity is stacked near 0.6938, marking another zone where price previously consolidated before distribution occurred. The presence of this liquidity reflects unfinished business from earlier market phases rather than speculative extension. A sustained move toward this level would require continued respect of the newly formed structure.
The uppermost mapped zone sits near 0.7360, where a draw on liquidity is explicitly marked on the chart. This area represents the furthest projected target based on the visible price structure and liquidity placement. Each level builds logically upon the previous one rather than appearing as isolated targets.
Structure Shift Establishes Defined Risk Boundaries
The chart also outlines clear structural boundaries that frame current risk conditions, with an entry zone identified near 0.4697 and an invalidation level positioned below 0.3656. These levels reflect the point at which the market structure would fail rather than discretionary estimates. By defining these boundaries, the setup establishes clarity around both upside potential and downside limits.
Since reclaiming structure, price action has remained orderly, with consolidation replacing the sharp impulsive moves that characterized the earlier decline. This change in behavior suggests that forced selling has already occurred and that remaining participants are positioning rather than exiting. Such compression often appears after liquidity has been removed from one side of the market.
With downside liquidity already taken and multiple layers of overhead liquidity still intact, directional pressure now tilts upward from a structural standpoint. Price remains below the major targets yet above the demand zone that triggered the shift. This alignment leads to a pivotal question as 2026 approaches: can ADA maintain structural strength long enough to draw price toward the stacked liquidity zones above without invalidating the newly formed base?
