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- ADA’s long/short ratio was at 1.034, indicating bullish market sentiment among traders.
- ADA’s open interest for futures increased by 8.5% and continued its steady upward trend.
Amidst this ongoing market reversal, Cardano (ADA) is showing strength and is on the verge of a massive rally, which appears to be fueled by a potential breakout and bullish on-chain metrics.
The overall market sentiment has changed, with major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) experiencing significant upward momentum, and now Cardano is following suit.
Cardano Price Momentum
Over the past three days, ADA has surged by more than 10%, and is trading at $0.36 at the time of writing after a price surge of more than 3.8% in the past 24 hours.
However, trading volumes declined by 5% during this period, indicating less participation from traders and investors amid the market reversal.
Despite the impressive price surge in recent days, ADA is still trading below its 200 Exponential Moving Average (EMA), indicating a downtrend in the upper frame.
The 200 EMA is a technical indicator used by traders and investors to determine whether an asset is in an uptrend or a downtrend.
Despite this downtrend, ADA was near the neckline of a bullish cup-and-handle price action pattern at $0.365 at the time of writing.
Historically, at these levels ADA has experienced significant selling pressure and price reversals.
Source: TradingView
If ADA breaks this neckline or resistance level and closes the daily candle above $0.367, there is a high chance of a 20% rally to $0.445.
Strong On-Chain Data
This bullish outlook is further supported by on-chain metrics: Coinglass’ ADA long/short ratio was at 1.034 at the time of writing, indicating bullish market sentiment among traders.
Additionally, ADA’s open interest increased by 8.5% and continued its steady upward trend.
Source: Coinglass
Traders and investors often use open interest and long/short ratios above 1 when constructing positions.
Read Cardano (ADA) Price Prediction 2024-2025
As of the time of writing, 50.84% of the top traders were long and 49.16% were short, so bulls were dominating the asset.
Source: Coinglass
Additionally, ADA’s OI-weighted funding ratio showed a bullish sentiment at +0.0096%.