Alta no Preço da Cardano Atinge 10% mas Venda de Baleias e Sentimento Fraco Acendem Alertas

This article was first published on Deythere.

The price of ADA has shot to the top of the crypto market with a 10% increase in the last 24 hours; outperforming all other assets. This Cardano price rally is taking place when almost all altcoins are retracing again in March supported by improvements on new market conditions.

However, the Cardano price rally isn’t as straightforward as it looks. Although price and trading activity are increasing, data reveals weak sentiment and aggressive selling from large holders. That gap is now influencing traders’ view of the Cardano price rally as it looks more like it’s driven by short-term activity than conviction.

Cardano Price Rally Leads as Market Turns Toward Altcoins

The Cardano price rally lifted ADA to jump 10% in one day, leaving the currency above the rest of top ten cryptocurrencies. This has been as a result of an overall recovery in the crypto market with altcoins now moving ahead.

Recent data shows ADA trading at just above the $0.28 level; showing a strong increase in trading volume. Market activity has picked up across exchanges and short-term interest is being renewed.

The larger market meanwhile has also seen capital rotate into altcoins, lending support to short spikes in momentum such as the current Cardano price rally.

That said, strong gains in one day don’t necessarily mean that there is an upward move in the cards ahead if deeper indicators aren’t pointing in the same direction.

Whale Selling Continues Despite Cardano Price Rally

One of the signals behind the Cardano price rally is what the large holders are doing. Whales were decreasing and not increasing exposure as recent on-chain data suggests.

Data by Santiment indicated that the market witnessed over 130 million ADA tokens sell-off in a weekly span, which put more selling pressure on the market. 

Rallies are often blunted by this kind of distribution. Selling by large holders during uptrends generates extra supply which can tackle the upside.

Meanwhile, other datasets show mixed behavior among whale groups. There have been token accumulations among smaller whale groups, but larger wallets keep on decreasing their positions. 

This division explains why the ongoing Cardano price rally is happening with caution, rather than confidence.

Price Moves Up But Sentiment Still Low

Most notably, even as strongly as Cardano price is rallying away from recent lows, sentiment across the entire market remains weak. This is one of the clearest red flags surrounding the current move.

Naturally, strong rallies come with an increase in traders’ confidence. However, the Cardano price rally comes with overall subdued sentiment and seems to stress uncertainty surrounding sustainability.

As stated in recent market reports, ADA still sit below longterm moving averages meaning the wider trend is not yet reversed. 

It is why traders are on edge. In the short term, Cardano price movement may appear strong but it has not yet changed the bigger picture.

Cardano Price Rally Fueled by Derivatives Activity

Another contributor to the price of Cardano is derivatives trading. According to current data, however, a lot of the momentum is from leveraged positions rather than spot buying.

CoinGlass’ data show that the futures’ OI in Cardano on the Binance exchange has reached $104.63 million on Monday, steadily rising since early March.  Cardano’s funding rates also turned positive on Sunday and surged to 0.009% on Monday, indicating that longs are paying shorts

ADA futures have seen increasing open interest, and funding rates are now positive. That means traders are taking long positions expecting further profit. 

Overall, liquidation data indicates that leveraged positions are a worthy contributor to price action, bringing volatility into the market.

That accounts for the rapid pace of the Cardano price rally. Moves that are derivative-led can move quickly, but they can also reverse just as quickly if positions get.

Cardano Price Prediction: $0.30 Resistance Stands in the Way Again

However, the Cardano price rally is now close to a level which has consistently rejected further upwards progress. The $0.30 area has been resistance for weeks, so far turning away multiple attempts at breakout.

Recent technical data shows ADA still trading under key moving averages grouped at between $0.29 – $0.35 range. A breakout above $0.30 could push ADA to $0.36, which was its second most recent lower high.

On the other hand, previous reactions showed that ADA could revisit the $0.25 zone if the range movement continues.

This means that the ongoing Cardano price rally is once more a test of that resistance. A sustained move above this range could pave the way for the higher levels in ADA. Otherwise the market could remain stuck in its current range.

Support has been around $0.25-$0.27 where buying activity previously stepped in.

Conclusion

In one of the strongest moves across the market over this week, Cardano price has been fueled by increasing volume and renewed interest in altcoins.

But the available data is more cautious. Weak sentiment, whale selling and derivatives dependence all point out that the Cardano price rally is not yet based on solid belief.

With ADA re-testing the $0.30 resistance, the market is watching closely. The next step will held traders know whether the Cardano price rally transforms into a sustained breakout or remains an additional brief push within a bigger variety.

Glossary

ADA: The native token of the Cardano blockchain.

Whales: Individuals who hold larger amounts of a coin and can move the market.

Open Interest: The sum of active future contracts.

Funding Rate: Charge between derivatives long and short traders.

Resistance Level: A price level where selling pressure tends to show up.

Frequently Asked Questions About Cardano Price Rally

What triggered the Cardano price rally?

The move stemmed from higher trading volumes particularly in derivatives markets and overall altcoin activity.

Is it whales behind the Cardano price rally?

Not really. Data reveals that large holders have been selling huge amounts of ADA.

Why is sentiment important here?

Low sentiment implies traders are being cautious and that can help to limit how far any rally can go.

What is the most critical resistance level for ADA?

The primary resistance to reaching for the breakout is at $0.30.

Does derivatives trading have an impact on the rally?

Yes. Surging open interest and funding rates indicate a lot of the move is driven by leveraged positions.

References

MEXC

Mitrade
CoinDCX 
Equiti