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Cardano Price Prediction: ADA Consolidates at $0.40 as Bullish Bets Rise on Derivatives Market

Highlights:

  • Cardano price steadies above $0.40 as its trading volume skyrockets 73%.
  • The ADA derivatives market signals improving sentiment amid rising bullish bets among traders.
  • The ADA technical outlook signals a potential breakout towards $0.48 immediate resistance. 

The Cardano (ADA) price is currently trading above $0.40 on Monday, as the bulls attempt to break towards the upside. In the meantime, the short-term price action is quiet and escalating bullish interest. This is indicated by the derivatives data, which continues to hold the potential of an upside breakout into view, reinforced by the rising trading volume.

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The long-to-short ratio of ADA at CoinGlass is 1.1061, and the highest since the end of the month. The above-one ratio indicates that there is optimism in the market as traders are betting on the Cardano price to increase.

ADA Long/Short Ratio: CoinGlass

Further, the Cardano funding rate data shows that there is a possible rally. Going by the data of OI-Weighted Funding rate of Coinglass, fewer traders are betting that the price of Cardano would fall even more, and higher numbers of traders are betting that the price would go up.

ADA OI-Weighted Funding Rate: CoinGlass

The metric has reversed to a positive rate on Sunday, and on Monday is at 0.0020% which means that longs are paying shorts. Historically, as indicated in the chart, when the funding rates have changed to negative and then turned positive, the price of Cardano skyrockets. The positive sentiment building around the ADA token may see the asset reclaim the $0.48 resistance soon.

ADA Price Eyes $0.48 Immediate Resistance

The Cardano price chart has all the hallmarks of a potential bullish reversal. The chart shows the altcoin is currently trading at $0.40, as the bulls target a breakout above the consolidation pattern. The 50-day Simple Moving Average (SMA) sits at $0.48, while the long-term 200-day SMA is at $0.68. The price is hovering just below these levels, indicating some intense bullish grip, with the bulls eyeing a breakout towards $0.48 resistance zone. 

ADA
ADA/USD 1-day chart: TradingView

The Relative Strength Index (RSI) at 42.63 is neutral-to-bullish as it is on the way up, signalling that buying pressure for the Cardano price is rising and there’s room to run. The upper resistance for the Cardano price sits at $0.48, while support holds strong at $0.37. The breakout target is $0.54, which is a potential 37% pump from here if the bulls charge past $0.48.

Meanwhile, popular crypto analyst Ali Martinez has predicted that the last time the Super Trend flipped bearish, the Cardano price dropped 80%.

On the other hand, if support at $0.37 cracks, we might slide back to $0.35 or even $0.27. Investors should keep an eye on volume, which is up 73%, indicating heightened market activity.

Looking ahead, the next few weeks could push the ADA price above $0.48 or higher if bullish sentiment holds and the whole crypto market flips positive. In the long term, if the bulls hold above $0.48 resistance, a breakout to $0.54 isn’t off the table by year-end.

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