As the overall cryptocurrency market grapples with a bearish sentiment, Cardano (ADA) is displaying a contrasting set of bullish on-chain metrics. Recent data from analytics firms suggests that while ADA's price has dipped 1% over the past 24 hours, key indicators point toward potential upward momentum.
On-chain analytics from Coinglass reveal a Long/Short Ratio for ADA at 1.0167, signaling bullish sentiment among traders. A Long/Short Ratio above 1 typically indicates that more traders are opting for long positions, anticipating price increases. This aligns with the observed increase in ADA’s Futures Open Interest, which rose by 3% in the last 24 hours and has been steadily climbing since early September 2024.
Traders often view rising Open Interest in conjunction with a Long/Short Ratio above 1 as a signal that the market is leaning bullish, suggesting that traders are building long positions. Currently, 51.2% of top traders hold long positions, compared to 48.8% holding short positions, reinforcing a positive outlook for ADA.
The OI-Weighted Funding Rate for ADA is also positive, further underscoring the bullish sentiment surrounding the asset. This combination of factors suggests that traders are feeling optimistic about ADA's future performance despite its recent price decline.
The bullish outlook for ADA may also be attributed to significant whale activity. On September 17, a notable transaction involving the movement of 19.5 billion ADA tokens—worth approximately $6.48 billion—was recorded. Such large movements often indicate confidence among high-net-worth investors in the asset's potential.
Additionally, the number of large transactions (valued above $100,000) increased by 10% on the same day. This uptick in whale activity could hint at an impending upside rally, as large investors often play a crucial role in shaping market trends.
In summary, while the broader market sentiment remains bearish, Cardano's on-chain metrics, including a bullish Long/Short Ratio, rising Futures Open Interest, and positive OI-Weighted Funding Rate, point to potential bullish momentum for ADA. Coupled with recent whale activity, these signals suggest that traders may be positioning themselves for a price rally in the coming days. As always, investors should remain vigilant and consider the broader market context when making trading decisions.
September 2024, Cryptoniteuae