- ADA is preparing itself for a major price increase.
- On the derivatives markets, long positions were dominant, as traders bet heavily on an increase in price.
Cardano’s [ADA] Performance remains excellent, as it boasts a 216.78% increase over the past one month. Recent gains of 20,555% over the past 24 hour period further reflect the positive momentum.
The main drivers of this rally are whale accumulations and an increase in buying on derivatives markets. AMBCrypto’s insights suggested that there may be further upsides to come.
What’s behind the rally of ADA?
Ali Charts, analyst. X (formerly Twitter) Cardano’s ADA rally in recent months has been influenced significantly by whale activity. Large holders have accumulated substantial amounts of this asset.
Analysts say that the current rally has been a reversal. “nothing compared to what is coming,” Citing multiple bullish signals
Ali Charts highlighted a surge in ADA’s transaction volume, which has consistently maintained levels of $22 billion per day over the past week, peaking at $28.43 billion—its highest in seven days.
Whales and institutional investors are increasing their position.
Source: X
Analysts have noted a significant rise in the “Balance By Holding in USD,” This tracker tracks ADA across all wallet balances. The increase was due to a large accumulation of ADA by the largest holders.
Whales—wallets holding up to 1% of the asset’s total supply—have shown a massive growth.
Wallets with ADA between $1 million to $10 million in value have seen their balances rise by 82.97%. Those who hold more than $10 million saw a growth of 145.72% over the last 30 day.
Source: X
Possible ADA rally signals from price movement
Ali Charts noted that ADA’s price movements resembled a fractal, which mirrored its trajectory for 2020.
The pattern includes an accumulation phase followed by the COVID-19 crash and a subsequent rally in November 2020 that propelled ADA up to its highest level of $3.085.
ADA was on a similar trajectory, after exiting an accumulation phase and experiencing a crash. It now shows signs of trending up.
If this fractal plays out, ADA could potentially rally by 2,288.92%, reaching $6.30—a move that is already be underway.
ADA’s momentum could slow temporarily as it gains more strength to continue its upward climb.
The asset may retrace down to $80 in this scenario. Significant buying could ignite the rally.
Source: X
Data shows a large buy order of 1.19 billion ADA, spread over approximately 48,000. The data shows a strong interest from investors and could be a catalyst for the price to rise.
Derivative traders fuel bullish pressure
AMBCrypto – A Look at Coinglass A significant rise in positions held by derivatives traders indicated a rising interest. The trend will continue as the bullish mood grows.
At the time of publication, Open Interest (used to gauge sentiment on the market based upon total values of unresolved derivatives) had decisively shifted bullish. This rose by 35.37 percent, to reach $1.02 billion.
Coinglass
You can read more about it here Cardano’s [ADA] Price Prediction 2024–2025
Simultaneously a number short liquidations amounting to $11.12 millions occurred, as traders who had bet on a decline in price were forced by ADA’s rising trend to close out their positions.
The Funding Rate is also rising, and was 0.0572% as of the time of press. As seen here, a positive Funding Rate indicates that long-term traders are in control, which further reinforces expectations for a rally.
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Source: ambcrypto.com
