Cardano Price Compression Setup May Uncoil Higher or Lower

Cardano's price has been stuck in extreme compression at $0.20 for some time, with smart money positioning running a 2.2:1 long-to-short ratio.

However, anemic spot volume and a flatlined MACD histogram raise cautionary flags about the potential direction of the market.

The 60% probability scenario is that the compression resolves higher, with derivatives buying pressure translating into spot follow-through and pushing ADA through the SMA 7 at $0.21.

According to Alvin Lang, a break above $0.21 on volume acceleration would activate the SMA 200 at $0.22 as the first meaningful target, potentially leading to a 20% return from current levels within two to three weeks.