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- ADA’s open interest (OI) increased by 6.9%, indicating strong participation from traders.
- ADA’s on-chain indicators suggested that bulls were dominating the asset.
Amid continued bullish market sentiment, Cardano (ADA) is up nearly 100% over the past few days. Currently, this rally is poised to continue due to the bullish price action pattern.
However, while current market sentiment remains positive, some assets have experienced price corrections while others have recorded notable gains.
Cardano is one asset that will continue its upward trend. Potential reasons for this bullish outlook include current market sentiment, large volume increases, and bullish price action patterns.
Cardano technical analysis and key levels
According to AMBCrypto’s technical analysis, ADA was facing strong resistance near $0.77 at press time and was attempting to break through this hurdle.
Based on recent price action, a further 30% surge is likely if the altcoin breaks above this level and closes the daily candle above $0.80.
Source: TradingView
At the time of this writing, ADA is trading above the 200 exponential moving average (EMA) on the daily time frame, indicating an upward trend.
Meanwhile, the altcoin’s Relative Strength Index (RSI) was in overbought territory, which could suggest a potential price correction or decline.
However, given the current market sentiment, it seems unlikely that ADA will undergo a price correction, although it is possible that the price will hold steady at the resistance level.
Bullish on-chain indicators
In addition to technical analysis, on-chain indicators further supported ADA’s positive outlook.
According to on-chain analytics firm Coinglass, ADA’s open interest (OI) has increased 6.9% in the last four hours and 3.2% in the last hour. A noticeable increase in open interest indicates strong participation by traders.
Additionally, analytics firm IntoTheBlock reported a 12% increase in large volume over the past 24 hours, suggesting intervention by whales and institutions as prices approach critical levels.
Source: IntoTheBlock
All these indicators combined suggest that bulls are currently dominating the asset and could support ADA in breaching this strong resistance level.
Realistic or not, here is the ADA market cap in BTC:
At press time, ADA was trading near $0.73 and has recorded gains of over 3.9% in the last 24 hours.
During this period, trading volume decreased by 42%, indicating a decrease in participation from traders and investors compared to the previous day.