Cardano's short liquidation has reached its highest level in the last two months after a 10% rise.
On the daily chart, #ADA has also formed a double bottom pattern, signaling an imminent bullish reversal.
#Cardano [ADA] has reversed from its bearish trend amid a general recovery in the #cryptocurrency market. In just 24 hours, ADA gained nearly 10% in value and was trading at $0.362 at the time of publication.
As a result of the price rebound, the volume of short ADA liquidations #rose to its highest level in two months.
According to Coinglass, about $868,000 of open ADA positions were liquidated. The total amount of liquidated positions reached $608,000, with short sellers being hit the hardest.
At the same time, funding rates rose sharply, jumping from 00008% at the time of publication to 0.0093%.
This sharp increase suggests that derivatives traders have been opening more long positions in Cardano. The increase in long positions indicates that traders have become more optimistic about the future performance of ADA. The positive sentiment in the derivatives market is consistent with the bullish signal on the daily chart of Cardano. Cardano has formed a double bottom pattern, which often precedes bullish reversals. This pattern indicates that ADA has found a strong support level and the upward momentum is likely to continue.
ADA tested the support level at $0.364. If the bullish reversal persists, ADA could rise by 11% to the next resistance level at $BTC A breakthrough to this level is possible with an increase in trading volumes. On the overnight chart, the overnight balance volume indicator (OBV) is rising. This indicates that the buying pressure is increasing as prices rise.
the Relative Strength Index (RSI) also supports the possibility of a rise to the target price. This indicator has risen to 55 and crossed the signal line, confirming bullish momentum.
Can Cardano maintain its position?
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