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Posted:
- ADA’s Open Interest (OI) has increased by 6.9%, indicating strong traders’ participation.
- ADA’s on-chain metrics suggested that bulls were dominating the asset.
In the ongoing bullish market sentiment, Cardano [ADA] has gained nearly 100% in the past few days. It is now poised to continue this rally due to its bullish price action pattern.
However, while the current market sentiment remained positive, some assets experienced price corrections, whereas others registered notable gains.
Cardano is among the assets poised to continue its upward rally. The potential reasons for this bullish outlook include the current market sentiment, increasing large transaction volume, and bullish price action patterns.
Cardano technical analysis and key levels
According to AMBCrypto’s technical analysis, ADA was facing a strong resistance near $0.77 at press time, and was attempting to breach this hurdle.
Based on recent price action, if the altcoin surpasses this level and closes a daily candle above $0.80, there is a strong possibility it could soar by another 30%.
Source: TradingView
At the time of writing, ADA was trading above the 200 Exponential Moving Average (EMA) on the daily time frame, indicating an uptrend.
Meanwhile, the altcoin’s Relative Strength Index (RSI) was in overbought territory, which could suggest a potential price correction or decline.
However, given the current market sentiment, it appears unlikely that ADA will face a price correction, though there is a possibility of price consolidation at the resistance level.
Bullish on-chain metrics
Besides technical analysis, on-chain metrics further supported ADA’s positive outlook.
According to on-chain analytics firm Coinglass, ADA’s Open Interest (OI) has increased by 6.9% in the past four hours and 3.2% in the past hour. This notable rise in open interest indicates strong trader participation.
In addition to that, analytics firm IntoTheBlock reported that large transaction volume has increased by 12% in the past 24 hours, suggesting the involvement of whales and institutions as prices approach the crucial level.
Source: IntoTheBlock
Combining all these metrics suggests that the bulls are currently dominating the asset and could support ADA in breaching this strong resistance level.
Realistic or not, here’s ADA market cap in BTC’s terms
At press time, ADA was trading near $0.73 and registered a gain of over 3.9% in the past 24 hours.
During this period, trading volume dropped by 42%, signaling lower participation from traders and investors compared to the previous day.
