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Cardano (ADA) Price: Derivatives Data Supports Continuation of 15% Rally
The cryptocurrency market has been a rollercoaster ride lately, with many altcoins experiencing significant price swings. Cardano’s (ADA) recent performance is no exception. As the asset continues to gain momentum, it appears that derivatives data supports the continuation of this 15% rally.
Cardano (ADA) has been on an impressive run lately, surging above $0.82. This impressive 11% gain in the previous week sets the stage for further upside potential. The cryptocurrency is now trading above its key moving averages, which aligns with the broader bullish bias.
Derivatives data also suggests a strong bullish momentum. Open Interest has seen a substantial increase, rising from $1.20 billion on August 3 to $1.44 billion by Monday. This surge in open interest represents fresh capital entering the market, rather than just price fluctuations of existing positions. The influx of new money entering the market indicates growing conviction among traders about ADA’s upward trajectory.
Moreover, the funding rate has flipped positive last week and is now trending upward. This indicates that long position holders are paying shorts, a classic sign of optimistic sentiment from the market.
The technical picture for Cardano also aligns with this bullish narrative. On the daily chart, the Relative Strength Index (RSI) is reading 61, comfortably above the neutral 50 level, and confirming increasing bullish momentum. A moving average convergence divergence (MACD) indicator is also flashing buy signals after a bullish crossover.
ADA now faces short-term resistance at $0.84. A daily close above this threshold would confirm the start of the next leg of the rally, setting the stage for a potential move toward more substantial targets later in the year and into 2025.
Source: blockonomi.com
