- Cardano continued its recovery, up 2% at press time.
- ADA remained below the neutral line of RSI.
Cardano (ADA) has shown notable gains in recent days, signaling a continued recovery. AMBCrypto’s analysis of ADA’s daily timeframe chart shows an upward trend for three consecutive days.
Cardano Begins Recovery
This is a recovery from a previous downtrend that began around January 13th, when the price was around $0.58. As of press time, ADA is trading at around $0.49, up more than 2%.
The total increase over the past three days is now over 6%.
Source: Trading View
Despite the commendable recovery, ADA continued to trade below its short-term moving average (yellow line). Additionally, the yellow line acted as resistance at around $0.56.
The uptrend has not completely reversed the downtrend, but has weakened it noticeably. At the time of writing, the Relative Strength Index (RSI) is above 40, indicating an upward trend.
Cardano’s buyers take a less aggressive stance.
As Coinglass’s indicators show, the excitement surrounding Cardano’s price rise has yet to translate into increased activity among traders.
A survey of Cardano’s funding rates shows a consistent positive trend over the past few months.
Despite the positive trend observed, the trend was almost flat. This means less aggression while the buyer remains in control.
Additionally, analysis of the open interest chart shows a lack of real movement recently. As of this writing, open interest was approximately $240.6 million.
ADA profit supply decline
As the price of Cardano fell, the percentage of total supply in profitable positions also decreased, as seen in the Santiment chart.
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AMBCrypto analyzed the chart and found that supply profit peaked at over 70% in December and fell to the 60% range.
As of this writing, the supply margin is approximately 66%, meaning that the supply margin at press time is approximately 22.4 billion.
Source: Santiment