- Cardano’s price surges more than 10% on Wednesday, reaching levels not seen since May 2022.
- On-chain metrics show bullish bias as trading volume reaches a 7-month high and whale transactions hit a 6-month high.
- The technical outlook suggests a continuation of the rally, targeting a significant psychological level of $1.00.
Cardano (ADA) price extends its bullish momentum, rallying more than 10% on Wednesday and reaching levels not seen since early May 2022. On-chain data further supports this rally as ADA’s whale transaction, trading volume, and open interest all rise, reaching record levels.
The technical outlook also suggests a continuation of the rally, setting the next target at the key psychological level of $1.00.
Cardano’s on-chain metrics look promising
Cardano’s on-chain metrics further support its price rise. According to Coinglass’s data, the futures’ Open Interest (OI) in ADA at exchanges rose from $585.37 million on Monday to $717.22 million on Wednesday, the new yearly high and highest level since November 10, 2021. An increasing OI represents new or additional money entering the market and new buying, which suggests a bullish trend.
Cardano Open Interest chart. Source: Coinglass
Santiment’s data further adds credence to the bullish outlook. Cardano’s daily trading volume has risen to a 7-month high of $52.26 billion this week, and its whale transactions have reached a 6-month high, suggesting rising interest among ADA’s investors.
Cardano’s daily trading volume and whale transactions chart. Source: Santiment
Cardano Price Forecast: Eyes for $1.00 mark
Cardano price has rallied over 140% since the start of November, extending the bullish momentum and trading at $0.837 at the time of writing on Wednesday.
If ADA continues its upward momentum and closes above the 61.8% Fibonacci retracement level (drawn from an April 2022 high of $1.245 to a June 2023 low of $0.221) at $0.854, it would extend the rally to retest the significant psychological level of $1.00.
However, the Relative Strength Index (RSI) momentum indicator on the weekly chart stands at 77, hovering above the overbought level of 70, signaling an increasing risk of a correction. Traders should exercise caution when adding to their long positions, as the RSI’s move out of the overbought territory could provide a clear sign of a pullback.
ADA/USDT weekly chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.