Cardano turns bullish on-chain – Buy signal for ADA?

ADA

As a seasoned analyst with years of experience navigating the crypto markets, I must say that I find the current state of ADA quite intriguing. While the overall market sentiment is bearish, Cardano’s on-chain metrics are flashing bullish signals, which is reminiscent of a lambo trying to fit in a crowded city street.

Presently, the general market outlook appears to be pessimistic; however, intriguing bullish indications stem from Cardano‘s [ADA] on-chain statistics, including the Long/Short ratio, Futures Open Interest, and OI-Weighted Funding Rate.

Despite these bullish on-chain metrics, ADA struggled to gain momentum, having experienced a price decline of 1% over the past 24 hours.

ADA looks bullish, on-chain

As reported by the blockchain analysis company Coinglass, the Long/Short Ratio of ADA stood at 1.0167 at the moment of publication, suggesting a generally optimistic outlook among traders regarding the market.

As a researcher, I’ve noticed an intriguing development in the Futures market. Over the past 24 hours, there’s been a 3% surge in Open Interest. This trend seems to be a continuation of a steady rise that began at the start of September 2024.

Cardano turns bullish on-chain – Buy signal for ADA?

Traders and investors frequently construct their positions by leveraging an increase in Open Interest together with a Long/Short Ratio that exceeds 1.

According to the information available, when the Long/Short Ratio surpasses 1 and Open Interest is rising, it seems that traders might be accumulating long positions.

In a reversal, when the Open Interest increases and the Long/Short Ratio is less than 1, it suggests that there are more short sellers taking up short positions.

Cardano turns bullish on-chain – Buy signal for ADA?

As we speak, approximately 51.2% of leading traders are optimistic about ADA by holding long positions, compared to 48.8% who are bearish with short positions, suggesting a generally positive or bullish perspective on ADA’s future price movement.

Moreover, the Positive OI-Weighted Funding Rate on ADA indicated a generally optimistic outlook for the asset.

Whales recent activity

The optimistic view could be influenced by recent large-scale transactions involving ADA whales. Specifically, on September 17th, these significant players transferred approximately 19.5 billion ADA tokens, equivalent to $6.48 billion, as reported by the analytics firm IntoTheBlock.

On that particular day, there was a 10% rise in big transactions exceeding $100,000. This surge suggests an increase in ‘whale’ activity, potentially hinting at an upcoming price surge in the near future.

Cardano technical analysis and key levels

Based on professional evaluation, Cardano (ADA) seemed pessimistic and was transacting close to an important support point at approximately $0.315.

On ADA‘s daily price chart, there were no signs of bullish trends, implying that a price increase might occur in the near future.

As a crypto investor, I’ve noticed that Cardano (ADA) has shown a positive trend in terms of historical price movement. If ADA manages to close its weekly candle above the $0.35 mark, there seems to be a high probability that it could surge by approximately 20% and reach around $0.42 in the near future.

Currently, the 200 Exponential Moving Average (EMA) shows a downward trend because Cardano (ADA) has been trading under this marker since April 2024.

Read Cardano’s [ADA] Price Prediction 2024–2025

ADA price momentum

Currently, ADA is hovering around the $0.33 mark, and it has seen a slight decrease of 0.15% over the past day.

In that timeframe, there was a 20% rise in the amount of trades being made, suggesting greater involvement from traders as the market experienced a decline.

2024-09-19 03:04

ADA looks bullish, on-chain

Whales recent activity

Cardano technical analysis and key levels

ADA price momentum

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