Key Takeaways
ETF speculation and strong sentiments have fueled Cardano’s bullish momentum lately. On-chain metrics and liquidations pointed to limited selling pressure ahead.
Cardano [ADA] is in the news today after it registered a sharp rebound on the charts, climbing by 13.4% to trade at $0.8787. This uptick aligned with a hike in market momentum, with its technicals hinting at strong investor activity too.
This surge came on the back of renewed optimism across the crypto market, driven by both on-chain and sentiment indicators.
In fact, analysts are now pointing to multiple converging factors — from chart-based breakout patterns to rising institutional interest — as potential catalysts for ADA’s next major move.
While short-term volatility remains a consideration, the combination of bullish technicals and supportive fundamentals is hard to ignore for traders watching the $1.50-target.
Cardano edges closer to a breakout above key resistance
The altcoin’s latest rally has pushed it closer to a decisive breakout point, with chart patterns showing the price action climbing towards the $0.88–$0.90 zone.
This level has historically acted as a strong resistance, and a confirmed breach could open the path to $1.50, as projected by some analysts. Especially since the chart trend has revealed higher lows since mid-July – A sign of sustained buying pressure.
ADA’s alignment with the upper trendline alluded to a build-up of momentum too. Therefore, a surge past the immediate resistance may trigger further acceleration. This may be supported by traders eyeing the psychological $1-mark, before the next major leg up.
Will ETF speculation and positive sentiment fuel ADA’s rally?
Grayscale’s establishment of a Delaware trust for ADA has sparked speculation about a possible Spot ETF, which could attract greater institutional participation.
At the same time, the weighted sentiment shifted sharply into positive territory, hitting 1.495 – A sign of growing bullish confidence. Such a combination of institutional anticipation and investor optimism usually means a fertile ground for a sustained rally.
Market reaction will depend on follow-through buying and any regulatory developments though.
In the near term, sentiment and ETF buzz may keep ADA’s momentum intact. Especially since these will encourage buyers to test higher resistance levels in the coming sessions.
Supply metrics hint at limited selling pressure ahead
On-chain data revealed the MVRV Z-score rose to 0.445. This implied that holders are increasingly in profit, but not at levels that typically trigger mass profit-taking.
Cardano’s Stock-to-Flow ratio surged too, hinting at a tightening supply environment. These metrics underlined that selling pressure could remain limited, giving room for further price growth.
Additionally, the consistent hike in scarcity metrics reflected a market environment where buyers may have to pay higher prices to accumulate.
Therefore, the current supply-demand setup might support the potential for sustained upside if demand continues to rise.
Short liquidations mount as bulls gain the upper hand
Finally, liquidations data revealed that shorts absorbed over $832k in losses within a single day, compared to $439k for longs. This skew in liquidations suggested that bearish traders are being forced out as the price rises, potentially fueling a short squeeze.
Also, Binance, Bybit, and OKX accounted for the largest short losses, underscoring the widespread impact. Such liquidation imbalances can amplify upward moves in the short term as shorts close positions and add to buying pressure.
Sustained bullish control in this environment could accelerate ADA’s hike towards its next resistance level.
