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- Whale investors accumulated over 200 million ADA in the past 48 hours, showing strong demand for the Cardano cryptocurrency.
- Technical indicators show ADA approaching key resistance at $0.84; a breakout could target $0.93, while analyst Ali Martinez predicts an explosive rally.
Cardano (ADA) continued its uptrend on Monday when it soared above the $0.82 level with a 10.87% growth in the last four days. Market signals from derivatives trading are pointing toward continued optimism. The ADA open interest has climbed to multi-week highs, and funding rates are turning positive, as mentioned in our previous story.
The rally is even stronger due to large-scale accumulation. Market analyst Ali Martinez says that whale investors have bought up more than 200 million ADA within the last 48 hours. Martinez previously said that the current structure in ADA is similar to that of its earlier cycle, except that it is working at a lower pace, which he believes could lead to an unprecedented surge. “It looks like we’re at the very start of an explosive move,” he concluded.
ADA Derivatives Data Points To Bullish Sentiment
According to Coinglass, the open interest of ADA soared to $1.44 billion today as opposed to $1.20 on August 3. This is the highest level since late July and shows capital coming into the market. It typically represents a new position being created as opposed to an existing one closed.
The change in the funding patterns contributes to the bullishness. Last week, ADA saw an inversion of funding rate, which has remained within a positive amount as it slowly increases. Positive rates translate into shorts being paid by long position holders, and this normally occurs when the sentiment in the market indicates that the price is going to continue to rise. In the past, a swift change in trend between negative and positive is followed by a robust bull run in the price of Cardano.
Technical Picture: Key Levels To Watch
Technically, the ADA price rally started as it took support at around $0.70 on August 3. This action triggered a 15% rally by Sunday, followed by a 3% gain on Monday. The traders have become attentive about the resistance zone of the currency on the scale of 0.84. An extended daily close above this level may set the stage to another attempt at Cardano price’s July 21 high of $0.93, as reported by CNF.
Further, bullish dominance is supported by momentum indicators. The Relative Strength Index (RSI) has moved to 61 today, clearly beyond the neutral point of 50, which indicates an increase in buying pressure. Moving Average Convergence Divergence (MACD) indicator has also given a bullish crossover, which is common at the beginning of the uptrends.
On the contrary, if ADA fails to surpass the $0.84 mark, it might experience a retracement to the 61.8% Fibonacci retracement mark at $0.77. This level would then act as a major support. Nonetheless, derivatives data and whale accumulation suggest strong breakout potential currently.
