- Cardano‘s ascending triangle formation signals investor accumulation and higher chances of a bullish breakout.
- Rising Open Interest, network activity and bullish market sentiment allude to increased market participation.
Cardano [ADA] has been gearing up for potential strong price recovery following its short-heavy market a few days ago.
After facing a selling pressure, ADA’s latest uptrend inside an ascending triangle pattern suggests a shifting market sentiment as buyers step in.
The altcoin’s steady bullish momentum and market participation suggests a potential breakout above $0.83 key resistance level.
At press time, ADA was trading at $0.7809, a 1.08% price surge despite a decreased trading volume in the last 24 hours according to CoinMarketCap.
Market sentiment & on-chain signals
Cardano has seen its 24-hour Open Interest rise by 2.09% and its long-short ratio rise to a neutral zone (0.92) suggesting traders are entering positions, according to Coinglass data.
ADA’s Weighted Funding Rate has also turned positive as demand for long positions rose.
According to IntoTheBlock data, the bid-ask volume stood at 68.09%, with predominantly bullish exchange signals suggesting investor accumulation as ADA’s chances of a breakout increases.
Cardano’s network active addresses have been gradually rising in the last 72 hours, showing increased market participation and mimicking ADA’s bullish uptrend on the hourly chart.
Cardano’s recovery and potential breakout
Looking at Cardano’s technical setup, ADA has been trading inside an ascending triangle by forming higher lows, signaling accumulation.
If the bullish momentum holds, a potential breakout above the $0.83 key resistance level could happen.
With a strong buying volume, ADA could hit $0.90 key resistance zone before rallying to $1.00 psychological level.
What’s next for Cardano?
ADA’s (EMA 200) at $0.7301 and (SMA 200) at $0.6547 were below its press time price, signaling buy and confirming its long-term bullish momentum according to TradingView data.
The Relative Strength Index (RSI) stood at 44, suggesting that Cardano was slightly oversold, and the asset was recovering from a bear market.
So, Cardano could see more buying pressure in the next few days, boosting its bullish momentum and the potential for a breakout.
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2025-02-24 11:06