- Cardano’s price continues to consolidate, despite the bullish sentiment across crypto markets.
- Speculative traders show hesitance, but spot market bulls have a strong grip, awaiting a breakout.
Cardano’s Recent Rally: Beyond Surface Impressions
Despite the overall crypto market experiencing a bullish sentiment, Cardano (ADA) remains in a consolidation phase, hovering below the $0.30 mark. The currency’s movement on Monday was indeed impressive, mirroring the trends of many Layer-1 tokens.
Cardano Speculators: Uncertain Waters Ahead
Last week alone, Cardano experienced a 12% price gain, moving its price from $0.24 to $0.26. However, the derivative markets hint at a cautious sentiment among speculative traders. Data sourced from Coinglass indicates that ADA’s Open Interest – a key metric revealing the value of outstanding derivative contracts – has dipped by a whopping $5.6 million since the start of this price rally.
A decline in Open Interest, especially during a price surge, typically indicates that long position holders are securing profits, closing their stakes. The lack of fresh capital being invested might hint that traders aren’t expecting large, profitable price swings in the near future. This cautious stance of speculators suggests they anticipate ADA‘s consolidation phase to persist.
The Exchange Order Books: Bulls Vs. Sellers
Bullish momentum was evident as Cardano experienced a surge in demand during the recent crypto market rally. Yet, many traders appear to be playing a waiting game, hoping for prices to climb even more before selling. When examining data across major crypto exchanges, including Binance, Kucoin, and Coinbase, ADA buy orders now surpass sell orders.
The bulls are clearly in control, with 320.12 million ADA coins marked for purchase, overshadowing the 280.3 million ADA set for sale. Of these, a significant 67% of sell orders (equivalent to 185 million ADA) are priced at $0.29 and above. With an excess market demand nearing 40 million ADA, it’s evident that the bulls are in a dominant position. However, the big question remains – will they adjust their prices upwards to meet seller demands?
Key Predictive Indicators
The “In/Out of Money Around Price” data offers another layer of insight. A substantial 40.92 million addresses had acquired 1.9 billion ADA at an average price point of $0.28. This particular resistance level could be a hurdle unless bulls raise their bids considerably. If they manage to do so, ADA could very well approach $0.30 once again, a price not seen since the start of August. Conversely, should market fears amplify, there’s potential for ADA to tumble toward the $0.20 mark.