What you need to know
What does the price of Cardano mean?
Retail traders have been accumulating ADA while whales are slowing their sales. This suggests a change in attitude towards cautious optimism, and the beginnings of a recovery.
How do derivatives metrics signal strengthening Cardano price momentum?
The rising open interest, the taker-buy dominance and shrinking liquidations of shorts reflect improved trader confidence in ADA market.
In the last seven days, Whales has sold more than 4 million ADA. This is causing renewed debate on the topic. Cardano [ADA] Retail investors enter the market cautiously, resulting in a downward price trend.
On-chain data shows that, after a week filled with intense whale distributions, the large holders of bitcoin are beginning to lower their activity.
The slowdown coincides with a rise in the number of smaller wallets, which suggests that retail investors have begun to absorb surplus supply.
It is a shift from fear to cautious positivity.
These phases are often preceded by recovery periods. Whale exits have created new entry opportunities for retail investors.
If the pattern continues, then it could indicate that the market is entering a new accumulation cycle which will precede a larger Cardano-price rebound.
Taker buy dominance highlights…
The Taker-Buy Dominance is increasing this week. It shows that aggressive buyers continue to gain control over the derivatives marketplace.
Cardano is experiencing a rise in price, which indicates that leveraged traders are growing more confident.
History shows that this dominance is often a sign of the beginning of a bullish short-term phase.
According to CoinGlassShort liquidations are now $270K, while long liquidations only amount to $72K, which confirms that traders who hold bearish views will be squeezed.
The ADA rebound is accelerated by this imbalance, which signals a shift in sentiment that favors bullish traders.
Source: CryptoQuant
A surge in Open Interest indicates a rise in speculative participation
At the time of publication, Open Interest (OI), a measure of open interest in the market, had increased by 3.3%. The traders are opening new positions to prepare for further gains.
This increase in speculative activity complements the taker-buy dominance measure, and highlights a coordinated return to risk appetite.
It is clear that the correlation between OI’s growth and ADA on its way back up indicates that traders have gradually regained confidence.
If the price does not break through the $0.69 barrier, the buildup of volatility could be triggered.
Nevertheless, the continued positive signal from derivatives indicates a growing belief in the current recovery trend.
Source: CoinGlass
Cardano price rebounds!
Combining retail accumulation with cooling whale activity and improved technical indicators, it is possible that ADA has reached a bottom in the short term.
As the pressure to sell whales begins to ease, retail traders will gradually return and accumulate tokens.
The market is often in the early stages before a bullish turn, especially if it’s accompanied by an increasing volume of trading near crucial support zones.
RSI is hovering at levels nearing oversold, which reinforces the idea that sellers could be losing their control. This would allow buyers to regain power.
Such setups historically have been the first signs of recovery, when accumulation results in a new price increase.
ADA’s bullish outlook could be further strengthened if it maintains its stability above $0.50. Any decline below this level would compromise the recovery structure.
Cardano is likely to see a stronger price increase in the future due to the increasing demand and improved technical standing.
TradingView
Cardano’s resurgence from strong support as well the rising OI and Taker Buy Dominance are all signs of improving sentiment.
This convergence of signals may indicate that ADA could be forming a basis for a sustainable recovery.
Cardano’s price could be re-ignited by a close decisively above $0.69.
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Source: ambcrypto.com
