Cardano, It fell to $0.27 on August 5 amid a broader market sell-off that led to over $1 billion in liquidations. As the market stabilized, ADA rallied 19% to bring its price back to $0.37. The token’s current technical setup points to further potential gains. Here’s a look at some notable onchain data and ADA chart analysis.
What’s Happening on the Cardano Front?
Coinglass According to data from Cardano, Cardano’s futures open interest increased by 21% last week, reaching $191 million. Futures open interest measures the total number of unsettled futures contracts, and an increase indicates more investors are entering new positions. A Prize Pool Worth 21 Million TL Awaits You from BinanceTR! Participating and winning has never been easier.. You can sign up to BinanceTR from this link. Get your first crypto!
The predominantly positive funding rates for ADA over the past seven days indicate that most of these investors are opting for long positions. The funding rate currently stands at 0.0067%, indicating that more investors expect ADA’s price to rise rather than fall. Funding rates are used in perpetual futures contracts to keep contract prices in line with spot prices. Positive funding rates indicate higher demand for long positions, indicating an upward trend in the market.
Last week ISLAND The increase in demand is linked to profitable trading activities. The daily trading volume ratio compared to the profit/loss ratio shows that more ADA transactions are profitable.
Currently at a ratio of 1.11, this means that for every losing trade, 1.11 trades result in a profit, reinforcing the optimism around ADA’s price potential.
ADA Graphic Analysis
Cardano’s Key momentum indicators on the one-day chart highlight increasing buying pressure. The Chaikin Money Flow (CMF) is showing a positive value of 0.11, indicating increasing liquidity inflow into the ADA market. A CMF above zero usually indicates strong buying pressure and suggests that the current rally may be sustained.
Additionally, ADA’s Relative Strength Index (RSI) is currently at 58.24, suggesting that buying activity is outweighing selling pressure. If this trend continues, ADA could retest its two-month high of $0.40.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
