TLDR
- Presently, Cardano (ADA) finds itself around the $0.74 benchmark, having jumped over 4% this past week.
- The monthly peak long-to-short ratio of 1.15 highlights a prominent bullish outlook in the market.
- Cardano's stablecoin valuation hitting $30.77 million signifies an unprecedented DeFi eagerness on the platform.
- If ADA sails past the $0.77 barrier, the technical forecast envisions a 13% upside potential.
- The substantial $13.75 million ADA withdrawal within 24 hours hints at accumulation actions by major stakeholders.
This week, Cardano (ADA) demonstrates bullish energy as trading figures suggest increased confidence in this top-ten crypto by market cap.
Currently trading close to $0.74, Cardano has rebounded over 4% so far this week following a period of stagnation between $0.69 and $0.75.
According to Coinglass, Cardano’s long-to-short ratio has peaked at 1.15 for the month, signaling a higher number of investors banking on price escalations.
Cardano’s stablecoin segment further bolsters this positivity with its market cap reaching record highs of $30.77 million, according to DefiLlama.
The wave of activity in stablecoin usage suggests a rising trend in the acceptance and use of DeFi solutions on Cardano, driving potential interest in ADA itself.
Technical Analysis
Looking at the charts, Cardano stands nearing a crucial resistance point, passing its 50-day EMA at $0.77 on Wednesday led to a 2.16% retreat.
$0.77 stands out as a pivotal point; if ADA crosses it with a firm daily close, we might see a rally up to $0.83.
The daily chart's RSI nearing 50 implies a softening in prior bearish forces.
Further bullish prospects are fueled by the MACD on the daily chart indicating an upward trend with Tuesday's crossover.
Recent Coinglass data highlights a $13.75 million ADA extraction from exchanges, a typical move to private wallets foreseen as a long-term holding strategy.
Such exchange outflows often limit immediate supply for trading, potentially setting the stage for price hikes.
Nonetheless, trading caution is advised; Santiment reports a spike in Age Consumed, showing possible sales from dormant accounts.
If long-time holders offload at current prices, this could prompt increased sell-offs.
On smaller scales, analysts spot an ascending triangle on the 4-hour chart with resistance at $0.775, a precursor to potential breakouts.
A breakout from this pattern may ignite buying surges, catapulting prices by 15% to tackle $0.90 and perhaps eyeing the $1 benchmark. Cardano’s The Bollinger Bands show signs of tightening on a 12-hour scale, which usually forecasts a flare-up in volatility once consolidation concludes.
ADA's trading volume has seen an 18% drop day-over-day, often a precursor to significant price changes post-stabilization.
In essence, Cardano teeters on a pivotal moment, with technical details and on-chain insights pointing to a possibly bullish move if resistance thresholds get breached.
For now, Cardano Maisie, a seasoned reporter in Cryptocurrency & Financial newscasting, has contributed to Moneycheck.com, level-up-casino-app.com, Computing.net, and is the Editor in Chief at Blockfresh.com.
