While the general market sentiment is currently leaning towards a bearish trend, Cardano [ADA] shows on-chain data that points towards positive indicators such as the Long/Short ratio, Futures Open Interest, and OI-Weighted Funding Rate which are signaling a bullish trend.
Despite these optimistic on-chain metrics, ADA has faced challenges in gaining traction, with a slight 1% price decrease in the last 24 hours.
Positive On-Chain Signals for ADA
Coinglass, an on-chain analytics firm, reports that ADA’s Long/Short Ratio stands at $1.0167 currently, indicating a bullish sentiment among traders in the market.
The Futures Open Interest for ADA has risen by 3% in the past 24 hours and has shown a consistent upward trend since the start of September 2024.
Traders and investors typically leverage a combination of increasing Open Interest and a Long/Short Ratio above 1 to establish their trading positions.
When the Long/Short Ratio is above 1 and Open Interest is on the rise, traders are likely inclined towards long positions. Conversely, a scenario where Open Interest increases while the Long/Short Ratio is below 1 indicates a preference for short positions by traders.
Presently, 51.2% of major traders are holding long positions, while 48.8% are in short positions, reflecting a positive outlook for ADA.
Moreover, ADA’s OI-Weighted Funding Rate is positive, adding further support to the bullish sentiment surrounding the asset.
Recent Whale Activity in the ADA Market
The recent bullish outlook could be attributed to significant whale activity observed in the ADA market. On September 17th, ADA whales moved a substantial amount of 19.5 billion ADA tokens, valued at $6.48 billion, as reported by on-chain analytics firm IntoTheBlock.
Furthermore, there was a 10% increase in large transactions (value exceeding $100,000) on the same day, hinting at a potential upward trend in the near future.
Technical Analysis and Key Levels for Cardano
Expert technical analysis points out that ADA is currently bearish and hovering around a critical support level of $0.315.
While there are no notable bullish price action patterns on ADA’s daily chart, indicating a possible uptick ahead.
Considering past price movements, a weekly candle close above the $0.35 level could trigger a 20% rise towards the $0.42 level in the upcoming days.
On the other hand, the 200 Exponential Moving Average (EMA) reveals a downtrend, signaling that ADA has been trading below this indicator since April 2024.
ADA Price Performance and Market Dynamics
Currently, ADA is trading near the $0.33 mark, witnessing a minor 0.15% price decline over the last 24 hours.
During the same period, the trading volume has surged by 20%, showcasing increased trader involvement amidst the ongoing market downturn.