- Cardano (ADA) is trading near $0.89, breaking out above $0.86 resistance.
- Open Interest surged 6.5% to $1.78B, signaling trader confidence.
- Key resistance levels ahead: $0.95 and $1.01 for ADA’s price.
Cardano (ADA) has confirmed a breakout from its descending wedge pattern, often seen as a bullish reversal after weeks of consolidation. At press time, ADA is trading near $0.89, successfully reclaiming and holding above the key $0.86 resistance level.
ADA Technical Analysis: Strong Momentum Favors Bulls
The breakout carries weight as it invalidates the downward pressure that limited upside moves. The Directional Movement Index (DMI) shows buyers firmly in control, with the +DI at 32 far above the –DI at 6. The ADX reading of 31 further confirms trend strength, suggesting ADA’s rally is backed by solid conviction.
With resistance levels ahead at $0.95 and $1.01, ADA’s momentum could sustain if buyers continue defending the $0.86 zone.
Cardano Futures Market: Rising Open Interest Boosts Confidence
Bullish sentiment is also visible in derivatives trading. Open Interest (OI) climbed 6.51% to $1.78 billion, highlighting increased capital flow into ADA futures. This shows traders are positioning for more upside, though it also raises the risk of sharper volatility if sentiment shifts quickly.
Spot Exchange Outflows Signal Reduced Selling Pressure
Netflows from exchanges add another bullish layer. Data shows $2.51 million in ADA left exchanges in the latest daily reading. Historically, such outflows suggest accumulation, with investors preferring to hold their coins rather than sell. This trend, if sustained, could provide steady support for ADA’s bullish setup.
Binance Trader Sentiment: Long Positions Dominate ADA
Trader positioning reflects the optimism. On Binance, 73.13% of accounts are long on ADA, compared to just 26.87% short, giving a Long/Short Ratio of 2.72. While this one-sided positioning can sometimes trigger corrections if trades get overcrowded, it reinforces the strong bullish bias currently shaping ADA’s price action.
Will Cardano Price Reach $0.95 and Beyond?
Cardano’s breakout, rising futures activity, consistent outflows, and strong trader sentiment all point toward continued upside. The next challenge sits at $0.95, and a decisive close above that level could pave the way toward $1.01. For now, ADA looks well-positioned to extend its rally if market support holds steady.
