Cardano (ADA) Eyes 20% Price Surge – Funding Rate Suggests Increasing Demand
September 26 2024 - 8:00PM
NEWSBTC
Cardano is trading at a crucial supply level that could spark a
significant rally to new highs. After last week’s interest rate
cut, optimism has surged among analysts and investors, with many
anticipating strong upward momentum for the altcoin. Related
Reading: Solana (SOL) Consolidates in Symmetrical Triangle –
Analyst Reveals $160 Target On Breakout This positive sentiment is
reflected in spot trading and the futures market, where key data
from Coinglass reveals a bullish inclination. The key market
sentiment indicator of the funding rate suggests that traders are
positioning themselves for a potential breakout. If Cardano breaks
past its current resistance, a 20% surge is expected, potentially
pushing the price to levels not seen in months. This breakout could
solidify the altcoin’s uptrend and set the stage for further
gains. As the price approaches this critical resistance,
investors are closely watching for signs of increased volume and
momentum, which would confirm the strength of the bullish trend.
With market sentiment shifting and technical indicators aligning,
Cardano appears poised for a significant move. Cardano
On-Chain Metrics Suggest A Breakout Cardano has surged over
15% since last week’s interest rate cut announcement, fueling
speculation of a potential altseason in the crypto market this
year. The broader market is turning optimistic, and key data from
Coinglass supports this sentiment, showing a positive funding rate
of 0.01%. This rate indicates that traders are paying a premium to
maintain long positions, reflecting their anticipation of a
potential price rally for ADA. A positive funding rate generally
suggests a bullish market outlook, as it shows that traders are
willing to incur additional costs to hold onto their positions,
expecting further price appreciation. As Cardano approaches its
crucial resistance level at $0.40, market sentiment points towards
a potential breakout. Should the price maintain its current
momentum and break above this key resistance, analysts expect an
aggressive surge to new highs. Related Reading: SUI Price Sits 40%
Below All-Time High As TVL Approaches $1 Billion Investors are
closely watching this level, as a successful breakout could lead to
a rapid 25% rally towards the $0.50 mark. This scenario would mark
a significant recovery for ADA and reinforce the growing belief
that altcoins, led by Cardano, could outperform in the coming
weeks. However, the market remains cautious. While the current
sentiment and data suggest a bullish outlook, the price must
sustain its upward momentum to validate these predictions. A
failure to break past the $0.40 resistance could result in a period
of consolidation or even a short-term retracement. As the crypto
community eagerly anticipates ADA’s next move, the coming days will
be crucial in determining whether Cardano can capitalize on this
renewed optimism and kickstart a broader altcoin rally. ADA Price
Action: Key Levels To Watch ADA is now trading at $0.39,
hovering around a key resistance level that hasn’t been broken
since late July. The price is less than 5% away from the daily 200
exponential moving average (EMA) at $0.41. This EMA has acted as a
significant resistance level since mid-April and now aligns with a
crucial supply zone, making it a pivotal point for continuing
Cardano’s bullish momentum. For the bulls to gain momentum and
establish a stronger uptrend, ADA must reclaim the 200 EMA and
decisively break past the $0.40 resistance. Doing so would signal a
confirmation of a daily uptrend and could pave the way for a
sustained rally to higher price levels. Related Reading: XRP $0.60
Triangle Breakout Could Ignite Parabolic Rally – Key Levels To
Watch However, a deeper correction could follow if ADA fails to
break through current resistance and set a new high. A pullback to
lower demand levels around $0.35 would be the likely scenario as
traders seek support before any potential rebound. The coming days
will be crucial in determining whether Cardano can break through
this resistance and establish a more bullish trajectory or if a
retracement is imminent. Featured image from Dall-E, chart from
TradingView
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