Cardano (ADA) is gaining more and more attention from private and institutional investors. The overall sentiment around ADA remains positive. As of the time of writing, ADA is trading at $0.3564, up 0.94% over the past day.
Traders are curious whether Cardano has enough strength to break through the $0.40 resistance level and start a possible bullish rally.
ADA’s technical analysis shows mixed results
The Relative Strength Index (RSI) is 45.84, which means the coin is in neutral territory. Therefore, ADA is neither overbought nor oversold at the moment, leaving room for potential upside as buying pressure increases.
The MACD indicator suggests an impending zero crossover, which could indicate a shift in momentum. This could be a bullish sign or indicate consolidation as buying power weakens. Therefore, ADA is hovering cautiously below resistance.
On-chain data: Positive signals, but mild
In terms of on-chain data, Cardano shows positive but modest progress. The network grew by 0.09%, and according to the “In the Price” metric, 1.40% of ADA holders are profitable. The concentration of large holders also remained stable, with no major changes in holdings.
Institutional investors are acting more cautiously. This can be seen from the 0.4% drop in large transactions. There are still no signs of a big rebound.
Holdings: Cautiously optimistic
ADA open interest has increased by 0.71% and now stands at $216.17 million. This gradual rise suggests that traders are cautiously optimistic about ADA’s potential to break above the $0.40 mark. The increase in open interest indicates increased market participation but without the strong bullish pressure required for a breakout.
Reckoning: The calm before the storm?
Liquidation data shows a balanced market. $17,600 of short positions were liquidated, while long positions were $497,000. This means that traders are not actively speculating on large price swings, keeping the market stable for now.
Outlook: Can ADA break through resistance?
Although Cardano shows potential for a breakout, the market is not ready yet. Both technical and on-chain data show room for growth, but the initial increase in open interest and low liquidations suggest that ADA needs more buying power and momentum to break through the $0.40 resistance and start a bullish rally.
