- Cardano (ADA) has surged over 6% in the past 24 hours, supported by bullish on-chain metrics and a Long/Short Ratio above 1, indicating strong market sentiment.
- If ADA can close above $0.35, analysts predict a potential 20% increase, possibly reaching $0.42.
Cardano (ADA) has experienced a significant surge, rising over 6% in the past 24 hours. This increase is supported by a notable rise in on-chain activity, including a Long/Short Ratio exceeding 1. If ADA’s price can close above $0.35, analysts anticipate a potential 20% price rise to $0.42.
Bullish Narrative and On-Chain Metrics
Amid the bullish narrative surrounding potential Federal Reserve rate cuts, Cardano has joined the broader market rally. The rally is supported by bullish on-chain metrics indicating strong price momentum ahead. Over the past 24 hours, ADA’s price has rallied more than 6%, currently trading at $0.3501 with a market cap of $12.58 billion.
Cardano Shows Bullish On-Chain Metrics
According to Coinglass stats, ADA’s Long/Short Ratio stands at 1.0152, indicating a bullish market sentiment. Typically, a ratio above 1 suggests traders are building more long positions than short ones, signaling potential price increases. This week, the Cardano blockchain hit a milestone of 96 million transactions, per a CNF report.
In addition, ADA’s Futures Open Interest rose by 6.09% to $199.89 million in the last 24 hours, continuing a steady increase since early September 2024. Rising Open Interest, coupled with a Long/Short Ratio above 1, indicates traders are likely positioning for a potential price increase. Furthermore, a surge in active addresses also bodes well for ADA.
However, the rise in Open Interest could also signal that some investors are hedging their positions in anticipation of market volatility. Currently, 51.2% of top traders hold long positions, while 48.8% hold short positions. This slight majority suggests traders remain cautiously optimistic about ADA’s price.
Adding to the bullish sentiment, ADA’s OI-Weighted Funding Rate is positive, signaling growing confidence among traders. Positive funding rates suggest more traders are willing to pay a premium for long positions, expecting a price rise.
What’s Next for ADA Price?
Whale activity has also been a focal point in ADA’s recent movements. On September 17, 2024, ADA whales moved approximately 19.5 billion ADA tokens, valued at $6.48 billion. According to IntoTheBlock, large transactions worth over $100,000 increased by 10% on the same day, hinting at a possible upside rally soon.
Despite bullish on-chain metrics, ADA’s technical indicators show a mixed picture. ADA is trading well above the key support level of $0.315, suggesting an uptrend in the short term. However, the 200 Exponential Moving Average (EMA) remains a point of concern. ADA’s price has stayed below the 200 EMA of $0.415 since April 2024, indicating strong bearish pressure.
If ADA can close its weekly candle above the $0.35 level, it could potentially rise by 20% to reach $0.42. Despite the absence of bullish price patterns on daily charts, traders are watching this level closely for signs of a reversal. As of this writing, Cardano’s price is up by 6.12%, trading at $0.3508.
Cardano’s recent bullish indicators, supported by strong on-chain metrics and trader sentiment, suggest a promising outlook for ADA. Investors and traders should keep a close eye on key levels and market dynamics for potential opportunities.
