The price of Cardano (ADA) has surged to levels last seen in May 2022, driven by on-chain solid metrics. A more than 10% rally was recorded on Wednesday, continuing ADA’s bullish momentum.
Key metrics, including whale transactions, trading volume, and open interest, have reached record highs. This growth suggests a sustained upward trend for the cryptocurrency.
Bullish Indicators from Cardano’s On-Chain Data
Positive on-chain data has supported the recent rally in Cardano. Information from Coinglass shows that open interest (OI) for ADA futures rose sharply this week.
The OI value increased from $585.37 million on Monday to $717.22 million by Wednesday, marking the highest since November 2021. Rising open interest indicates the influx of new funds and buying activity, reinforcing a bullish outlook.
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Santiment data reveals that daily trading volume for Cardano has reached $52.26 billion, the highest in seven months. Additionally, whale transactions are at a six-month peak, highlighting increased interest from large investors.
Cardano Targets the $1.00 Mark as Momentum Builds
Cardano’s price has seen a remarkable 140% rally since early November, trading at $0.837 at the time of the latest report.
If the price closes above the critical $0.854 level, representing the 61.8% Fibonacci retracement from the $1.245 high in April 2022 to the $0.221 low in June 2023, a push toward the $1.00 psychological level is expected.
However, caution is advised as the Relative Strength Index (RSI) on the weekly chart has reached 77, exceeding the overbought threshold of 70. Traders are warned of a possible pullback if RSI momentum begins to weaken.
Cardano’s Market Outlook: Opportunities and Risks Ahead
While Cardano’s bullish metrics present promising opportunities, market dynamics may introduce risks. The current RSI level indicates a heightened likelihood of a price correction.
Investors are encouraged to monitor key resistance levels closely and adjust strategies accordingly. A sustained close above $0.854 would likely drive further gains, while failure to maintain momentum could signal consolidation.
Cardano’s Price Rally Supported by Strong Metrics
Cardano’s rise to a two-year high has been underpinned by increased whale activity, higher trading volume, and rising open interest. The $1.00 mark remains a critical target, dependent on maintaining upward momentum.
Investors should remain cautious due to overbought conditions in the RSI. Whether Cardano continues its rally or enters a correction phase will depend on how these technical and on-chain factors evolve in the coming days.
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