The Key Takeaways
What is driving ADA’s improved sentiment and early break-out pressure?
ADA is gaining strength due to synchronized sentiment of the crowd, smart money, price compression and Taker Buy dominance.
Cardano: what are the key levels for traders?
While $0.5426 is the critical support for the next break out attempt, $0.6183 will cap any upward pressure.
Cardano [ADA] The sentiment gauges of both smart money and retail traders showed similar optimism. Smart-money sentiment readings indicated that accumulation was firmer and more pronounced.
When corrective steps are performed, this alignment occurs rarely.
This gave ADA a psychological boost that was very important for its short-term prospects.
Are ADA preparing to break out of the channel that is becoming tighter?
ADA continued to consolidate within a narrowing descending trend. Structure dominated the recent price action.
Price approached upper edge of wedge and tried to create early breakout pressure.
The constant defense of buyers was also evident by the repeated bounces around $0.5426.
The resistance level of $0.6183 was a major barrier. After volatility had been reduced for some time, the descending channel often led to decisive moves.
TradingView
Taker buy dominance grows
Taker CVD demonstrated that buyers were consistently absorbing the pressure from the sell-side, and confirmed active demand on the Futures markets.
This trend was a positive one for buyers, and it boosted the short-term momentum. The activity showed that participants used market orders to take action rather than wait for a retracement.
This is often the beginning of a stronger move.
Unanimity in the order-flow and sentiment alignment added further weight to the rising bullish structure. Overall, buyers maintained their initiative as the market improved.
Source: CryptoQuant
As traders raise exposure, open interest increases
Open interest increased by 2.6% to reach $681.16 millions, as a result of increased participation among Derivatives traders.
The higher OI is usually accompanied by a greater volatility and the expansion of ADA shows traders committing more capital.
OI expanded in line with tightening prices, increasing likelihood of a rapid move after ADA leaves the wedge.
A higher OI increases the risk of liquidation if a price is rejected at a major resistance.
Source: CoinGlass
Binance is dominated by longs
Binance’s long/short ratio showed that 69.48% of accounts were in the long side versus 30.52 % short. A ratio of 2.28 indicates traders are leaning towards upside expectations.
In conjunction with rising sentiment and OI, increasing long exposure can often reinforce the bullish trend. During sudden declines, however, the volatility could be increased by a crowded position.
The positioning data still supported the bullish narrative, as traders moved to continue on an upward trajectory.
Source: CoinGlass
Cardano showed an unusual combination of rising sentiments, growing futures interest, expanding open Interest and tightening prices near the breakout zone.
The ADA has entered a new phase of momentum, as several independent indicators have aligned.
While resistance at $0.6183 still remains crucial, the current setup is bullish if buyers maintain pressure.
ADA will have a real chance to move higher once the descending trend is broken, but the bulls should maintain the strength in the $0.54 zone of support.
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Source: ambcrypto.com
