Cardano [ADA] has reversed from a bearish trend amid a recovery in the entire cryptocurrency market. In just 24 hours, ADA has risen by nearly 10% and is currently priced at $0.3743.
The price rebound caused ADA short liquidations to increase to the highest level in two months.
Data from Coinglass shows that about $868,000 of ADA’s open interest was liquidated. Short sellers were hit the hardest as short liquidations reached $608,000.
At the same time, the financing rate soared sharply, jumping from 0.0008% to 0.0093% as of press time.
This surge indicates that derivatives traders are increasingly opening new long positions on Cardano. An increase in long positions suggests that traders are becoming optimistic about ADA's future performance.
The positive sentiment in the derivatives market aligns with bullish signals on Cardano's daily chart.
Cardano MVRV ratio fluctuates.
As of the time of writing, Cardano's market value to realized value (MVRV) ratio has significantly decreased over the past four days, from 0.723 to 0.661.
The decline in the MVRV ratio indicates that ADA's market value is below its realized value. This suggests that current ADA buyers are purchasing at an undervalued price.
However, it is worth noting that even a decline in the MVRV ratio may indicate that investors are losing confidence in an ADA rebound. Therefore, more buyer support is needed to confirm the upward trend.
Cardano's price rises amid a cryptocurrency surge triggered by the election.
Driven by the election results, the entire cryptocurrency market has surged, with Bitcoin reaching $75,000 and Cardano's price skyrocketing, joining the strong rebound in the cryptocurrency market. Top altcoins and meme coins have also risen significantly, with Ethereum hovering above $2,800. Subsequently, Solana, XRP, and other major assets also rose, triggering investor optimism.
Trump's victory over Harris in the election has brought a candidate supportive of cryptocurrencies, reflecting strong supportive sentiment for cryptocurrencies. This shift may stem from an increase in donations and support from cryptocurrency enthusiasts, providing significant momentum for the industry.
Will ADA's price reach $1 in 2024?
In the past 24 hours, ADA's value has significantly increased, reaching $0.3742, a rise of approximately 10%. This growth follows a period of stable trading and shows a noticeable increase from the recent low of $0.3314.
Bulls are preparing to break through Cardano's price prediction resistance level of $0.38, which could trigger further upward momentum for the cryptocurrency. If ADA breaks this barrier, it may test a more significant resistance level of $0.75. If buying pressure intensifies, ADA's price could even approach the $1 mark in the anticipated bullish rebound.
The daily technical indicators for ADA's price show a significant upward trend, attracting market attention. The Chaikin Money Flow (CMF) indicator, which measures buying and selling pressure, shows a positive value of 0.1. This indicates that capital inflows are supporting the price increase, thus enhancing ADA's bullish outlook.
According to Coinglass data, trading activity in Cardano's ADA derivatives market has significantly increased, with a sharp rise in ADA derivatives trading volume indicating a notable increase in market participants' interest.
The Relative Strength Index (RSI) also supports the likelihood of an upward move to the target price. This indicator has surged to 55 and has crossed the signal line, confirming that bullish momentum is at play.
With these bullish signals converging, Cardano could still move towards $0.404.
In summary, ADA short liquidations have surged to a two-month high after a 10% increase. Meanwhile, its return to the top ten cryptocurrencies is expected to reignite investor optimism, supporting the likelihood of further increases. ADA's recent surge seems dependent on broader market sentiment. Therefore, investors should closely monitor any changes in overall market sentiment to confirm the continuation of the upward trend.
