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- ADA’s Long/Short ratio stood at the level of 1.034, indicating bullish market sentiment among traders.
- ADA’s Futures Open Interest rose 8.5% and continued to rise steadily.
In this ongoing market reversal, Cardano [ADA] seemed bullish and poised for a massive rally, driven by a potential breakout and bullish on-chain metrics.
Currently, the general market sentiment has changed, with major cryptocurrencies such as Bitcoin [BTC] and ether [ETH] is experiencing significant upward momentum, and now Cardano is following suit.
Cardano price momentum
Over the past three days, the ADA has risen more than 10% and is trading near $0.36 at the time of writing, following a price increase of more than 3.8% in the past 24 hours.
However, during this period, trading volume fell by 5%, indicating lower participation from traders and investors amid a market turnaround.
Despite an impressive price increase in recent days, ADA was still trading below the 200 Exponential Moving Average (EMA), indicating a downtrend on a higher frame.
The 200 EMA is a technical indicator used by traders and investors to determine whether an asset is in an up or down trend.
Despite this downtrend, ADA was near the neckline of a bullish cup-and-handle price action pattern at the $0.365 level at the time of writing.
Historically, this level has been a point where ADA has faced significant selling pressure and price reversals.
Source: TradingView
If ADA breaks this neckline or resistance level and closes a daily candle above $0.367, there is a high chance that the price could rise 20% to reach $0.445.
Bullish data on the chain
This bullish outlook is further supported by on-chain metrics. Coinglass’ ADA Long/Short Ratio stood at the level of 1.034 at the time of writing, indicating bullish market sentiment among traders.
Furthermore, ADA’s Futures Open Interest rose 8.5% and continued to rise steadily.
Source: Coinglass
Traders and investors often use the combination of rising open interest and long/short ratio above 1 when building their positions.
Read Cardanos [ADA] Price forecast 2024–2025
At the time of writing, 50.84% of top traders had long positions, while 49.16% had short positions. So bulls dominated the asset.
Source: Coinglass
Moreover, ADA’s OI-weighted funding rate was +0.0096%, indicating bullish sentiment.