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Cardano (ADA) made an important move, surpassing the long-term resistance of $0.40 and hitting the key supply level at $0.45 after an impressive 42% rally over the past few days. This breakthrough sparks new optimism among investors who have been waiting for ADA to demonstrate its sustainable strength.
According to recent data from Coinglass, the ADA funding rate has risen to levels not seen since June, indicating strong demand and suggesting that this rise could be just the beginning of a larger trend.
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This high funding rate indicates increased leverage in the market as traders become more optimistic about ADA’s potential for further gains. If ADA settles above the $0.40 mark, it could establish a new support level, consolidating its recent uptrend and opening the door to higher targets.
However, the next few days will be crucial as the cryptocurrency market continues to rise, with key resistance and support levels in place. While traders are closely monitoring ADA’s price action, it remains to be seen if this rally can sustain the momentum and push Cardano towards new highs.
Cardano is starting to rise
Cardano has seen a strong rally after months of selling pressure, marking its first major upward move recently. With the rally above crucial resistance levels, ADA not only broke out of its downtrend but also created a new bullish price structure.
Recent data from Coinglass confirms this bullish sentimentWhich indicates that ADA’s open interest (OI) weighted funding ratio has reached its highest level since June. This rise in funding rates is a strong indicator of increased optimism among investors, as traders are willing to pay a premium for long positions, betting that Cardano will continue to rise. A positive funding rate indicates that demand for ADA is on the rise, with market participants keen to enter into bullish trades.
This breakout above key levels is attracting significant interest from retail and institutional investors, who are now bracing for further potential upside. Many analysts point out that this pump could serve as a catalyst for a longer bullish continuation if Cardano can maintain its momentum. While ADA will need to establish new support at breakout levels to confirm this trend shift, the recent uptrend indicates renewed confidence in Cardano’s long-term potential.
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As ADA continues to rise, traders are now closely monitoring the consolidation phase, which could provide the fuel for the next phase of this rally. If support around these levels holds, Cardano could be on the verge of a broader uptrend, making it a key altcoin to watch as the market recovers and interest in high-potential assets is renewed.
ADA Price Action: Key Levels to Watch
Cardano (ADA) is currently trading at $0.43, after a strong rally that took it above the 200-day moving average (MA) at $0.39 – a crucial level that signals long-term strength and a trend reversal. This move above the 200-day EMA indicates that the bulls are in control, paving the way for further potential gains. To maintain this momentum, it is necessary for the ADA to remain above this moving average as support, reinforcing the bullish outlook.
Recent price action remains very positive, as ADA continually seeks to challenge new supply levels. The next major target is $0.458, which is a resistance level that, if broken, could open the door to higher price marks. However, a short bounce to lower demand levels around $0.415 would be a constructive move, allowing ADA to build a solid foundation ahead of another potential rally.
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This controlled pullback could attract new buying interest and provide the fuel needed for ADA to move higher. Overall, with price action consistent with key technical indicators, ADA’s recent rise above the 200-day moving average highlights a promising turnaround for the asset, with further bullish developments likely if critical support levels remain firm.
Featured image by Dall-E, chart from TradingView
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