Summary of Cardano (ADA) Price Analysis
Cardano (ADA) has recovered strongly from a prolonged bear market, achieving a +200% increase over the past three weeks, with prices rising from $0.33 to $1.15—the highest level since April 2022. The cryptocurrency is now consolidating around the $1 mark, with three possible scenarios for its next move:
1. Bullish Breakout: A rise above $1.20 could lead to new price highs.
2. Reversal: A lower high on the chart might signal a trend reversal.
3. Retracement: A pullback to $0.90 followed by sideways trading.
On-chain and derivatives data point to bullish momentum:
• Active addresses, transaction volumes, and total value locked (TVL) in Cardano’s network have all increased significantly. TVL reached $590 million, the highest in its history.
• About 66% of ADA holders are currently in profit.
• A high correlation with Bitcoin (0.94) suggests the rally could continue with the broader market.
In the derivatives market:
• Open interest has reached $850 million, the highest since 2021, and spot trading volumes have surged.
• Funding rates have risen to 0.038%, showing heightened leverage but also posing risks of over-leveraging if they climb further.
Overall, Cardano’s metrics suggest a bullish outlook, but traders should monitor for signs of exhaustion or over-leverage in the market.
