Cardano’s Ascending Triangle Formation

Cardano’s ascending triangle formation signals investor accumulation and higher chances of a bullish breakout.

Key Insights

• Rising Open Interest, network activity, and bullish market sentiment indicate increased market participation.

Cardano (ADA) has been gearing up for a potential strong price recovery following a short-heavy market trend a few days ago.

After facing selling pressure, ADA’s latest uptrend inside an ascending triangle pattern suggests a shift in market sentiment as buyers step in. The altcoin’s steady bullish momentum and market participation hint at a potential breakout above the $0.83 key resistance level.

At press time, ADA was trading at $0.7809, marking a 1.08% price surge despite a decrease in trading volume over the last 24 hours, according to CoinMarketCap.

Market Sentiment & On-Chain Signals

Cardano has seen a rise in its 24-hour Open Interest by 2.09%, and the long-short ratio has moved to a neutral zone (0.92), suggesting traders are entering positions, according to Coinglass data.

ADA’s Weighted Funding Rate has also turned positive as demand for long positions rises. According to IntoTheBlock data, the bid-ask volume stood at 68.09%, with predominantly bullish exchange signals suggesting investor accumulation as ADA’s chances of a breakout increase.

Cardano’s network active addresses have shown a gradual increase over the last 72 hours, reflecting enhanced market participation and corresponding with ADA’s bullish uptrend on the hourly chart.

Cardano’s Recovery and Potential Breakout

Considering Cardano’s technical setup, ADA has been trading within an ascending triangle, forming higher lows, which signals accumulation. If this bullish momentum persists, a possible breakout above the $0.83 key resistance level could occur.

With strong buying volume, ADA could reach the $0.90 key resistance zone before rallying to the psychological level of $1.00.

What’s Next for Cardano?

ADA’s EMA 200 at $0.7301 and SMA 200 at $0.6547 are below its press time price, which signals buy opportunities and confirms its long-term bullish momentum, according to TradingView data.

The Relative Strength Index (RSI) stood at 44, indicating Cardano was slightly oversold and recovering from a bear market. Thus, Cardano could experience increased buying pressure in the coming days, enhancing its bullish momentum and breakout potential.