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Published:
- ADA’s Long/Short ratio stands at the 1.034 level, indicating bullish market sentiment among traders.
- ADA futures open interest increased by 8.5% and continued to rise steadily.
In this ongoing market reversal, Cardano (ADA) looked bullish and poised for a massive rally, driven by a potential breakout and bullish on-chain metrics.
Currently, the overall market sentiment has shifted, with major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) experiencing significant bullish momentum, and now Cardano is following suit.
Cardano Price Evolution
Over the past three days, ADA has surged more than 10%, trading near $0.36 at press time, after a price increase of more than 3.8% in the past 24 hours.
However, during this period, its trading volume fell by 5%, indicating lower participation from traders and investors amid a market reversal.
Despite an impressive price increase in recent days, ADA was still trading below the 200 exponential moving average (EMA), indicating a downtrend on a higher time frame.
The EMA 200 is a technical indicator used by traders and investors to determine whether an asset is in an uptrend or downtrend.
Despite this downtrend, ADA was close to the neckline of a bullish cup and handle price action pattern at the $0.365 level at press time.
Historically, this level has been a point where ADA has faced significant selling pressure and experienced price reversals.
Source: TradingView
If ADA breaks through this neckline or resistance level and closes a daily candle above $0.367, there is a strong possibility that it will rise by 20% to reach $0.445.
Bullish data on the channel
This bullish outlook is also supported by on-chain metrics. Coinglass’ ADA Long/Short ratio was at the 1.034 level at press time, indicating bullish market sentiment among traders.
Additionally, ADA futures open interest increased by 8.5% and continued to rise steadily.
Source: Coinglass
Traders and investors often use the combination of rising open interest and a Long/Short ratio greater than 1 when constructing their positions.
Read Cardano (ADA) Price Prediction for 2024-2025
At press time, 50.84% of top traders held long positions, while 49.16% held short positions. Thus, bulls dominated the asset.
Source: Coinglass
Additionally, ADA’s OI-weighted funding rate was +0.0096%, indicating bullish sentiment.
