- Cardano has been consistently performing well recently, benefiting from Bitcoin’s rally above $52,000.
- Over $1.26 million worth of ADA longs have been liquidated in the past 24 hours.
- Trading activity has accelerated, with open interest increasing by over 4.7% to $430 million.
Cardano has consistently ranked among the top gainers lately, with its price surging past key levels on the back of Bitcoin’s rally above $52,000. This upside has sparked a noticeable increase in on-chain activity for ADA, pointing to a possible breakout ahead. However, the path upward faces potential pullbacks that could challenge buyer patience.
Over the past 24 hours, around $1.26 million worth of ADA longs have been liquidated, with both bulls and bears equally active during the volatility. Trading activity has accelerated recently, with open interest jumping over 4.7% to tag $430 million – signaling a spike in prices may come.
This surge follows a remarkable increase in the total value locked (TVL) on the Cardano network, which tends to attract additional buyers. Per data, Cardano’s ecosystem saw its TVL in USD terms surge 166% quarterly and 693% annually. The TVL of ADA-based stablecoins also grew by 37% for the quarter.
Cardano large transactions on the rise
IntoTheBlock indicates a rising volume of large transactions on the network too, having jumped from $10.7 billion to a recent peak of $16.1 billion. This suggests heightened interest from major investors that typically precedes retail piles in.
Additionally, around 55% of all Cardano addresses, nearly 2.4 million, are currently profitable following the climb back above $0.55. This could encourage investors to keep accumulating, raising the odds of a short-term pump.
Subsequently, accelerating momentum may soon convert Cardano’s netflow to a negative level if reserves on exchanges decline due to holders withdrawing supply. This would limit potential sell-side pressure.
For now, ADA trades around $0.589492, having declined 1.9% over yesterday. While bulls managed to push it out of a descending channel, sellers continue hindering further upside at the $0.61 barrier.
With the 20-day EMA trending upward at $0.58 and the RSI dropping from overbought levels, a minor advantage rests with sellers presently. However, provided ADA holds above $0.57 support, a retest of $0.62 looks likely.
