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- On September 17, ADA whales moved a significant 19.5 billion ADA tokens.
- ADA could rise 20% to the $0.42 level if it closes a weekly candle above the $0.35 level.
Overall market sentiment is bearish at the moment, while Cardano [ADA] data on the chain, such as the Long/Short ratio, Futures Open Interest and OI-Weighted Funding Rate, flash bullish signals.
Despite these bullish on-chain metrics, ADA struggled to gain momentum after experiencing a 1% price drop in the past 24 hours.
ADA looks bullish, on chain
According to the on-chain analytics company Mint glassADA’s Long/Short Ratio stood at $1.0167 at the time of writing, indicating bullish market sentiment among traders.
The Futures Open Interest is up 3% in the last 24 hours and has been rising steadily since early September 2024.
Source: Coinglass
Traders and investors often used the combination of rising open interest and a Long/Short Ratio value above 1 to build their position.
Based on the data, if the Long/Short Ratio is above 1 and the Open Interest is increasing, it suggested that traders were potentially building long positions.
Conversely, if Open Interest is rising and the Long/Short ratio is less than 1, it indicates that short sellers were betting more on short positions.
Source: Coinglass
At the time of writing, 51.2% of top traders had long positions, while 48.8% had short positions, indicating a bullish outlook for ADA.
Furthermore, ADA’s OI-weighted funding rate was positive, further indicating bullish sentiment for the asset.
Source: Coinglass
Whales recent activity
This bullish outlook may be due to recent whale activity. On September 17, ADA whales moved a significant 19.5 billion ADA tokens, worth $6.48 billion, according to on-chain analytics firm IntoTheBlock.
In addition, large transactions (value above $100,000) increased by 10% on the same day. This uptick in whale activity indicated a potential upside rally in the coming days.
Cardano technical analysis and key levels
According to the expert technical analysis, ADA appeared bearish and traded around a crucial support level at USD 0.315.
On ADA’s daily chart, no bullish price action patterns were seen, indicating a possible upside in the coming days.
Source: TradingView
However, based on the historical price momentum, there is a high probability that the price will rise by 20% to the $0.42 level in the coming days if ADA closes its weekly candle above the $0.35 level.
Meanwhile, the 200 Exponential Moving Average (EMA) indicates that it is in a downtrend as ADA has been trading below this indicator since April 2024.
Read Cardanos [ADA] Price forecast 2024–2025
ADA price momentum
At the time of writing, ADA was trading around the $0.33 level and has experienced a modest price decline of 0.15% over the past 24 hours.
During the same period, trading volume increased by 20%, indicating greater trader participation during the market downturn.