According to BiJie Network:
Amid the recovery of the entire cryptocurrency market, Cardano [ADA] has reversed from a bearish trend. In just 24 hours, ADA has surged nearly 10%, currently priced at $0.3743.
The price rebound has led to ADA short liquidations reaching the highest level in two months. Data from Coinglass shows that approximately $868,000 in open positions of ADA were liquidated. Short sellers were hit the hardest, with short liquidation amounts reaching $608,000.
Meanwhile, the funding rate has soared significantly, jumping from 0.0008% to 0.0093% at the time of writing. This surge indicates that derivatives traders are increasingly opening new long positions on Cardano. An increase in long positions suggests that traders are becoming optimistic about ADA’s future performance.
The positive sentiment in the derivatives market aligns with bullish signals on Cardano’s daily chart.
Cardano MVRV Ratio Stumbles
As of the time of writing, Cardano’s Market Value to Realized Value (MVRV) ratio has significantly decreased over the past four days, dropping from 0.723 to 0.661. A declining MVRV ratio indicates that ADA’s market value is below its actual value. This suggests that current ADA buyers are purchasing at undervalued prices.
However, it’s worth noting that even a declining MVRV ratio might indicate a loss of investor confidence in an ADA rebound. Hence, more buyer support is needed to confirm the upward trend.
Cardano Price Rises Amid Election-Induced Crypto Surge
Driven by election results, the entire crypto market has surged, with Bitcoin prices reaching $75,000 and Cardano prices soaring, joining the strong rebound in the cryptocurrency market. Top altcoins and meme coins saw significant increases, with Ethereum hovering above $2,800. Subsequently, Solana, XRP, and other significant assets also rose, sparking investor optimism.
Trump’s victory over Harris in the election brought in a pro-cryptocurrency candidate, reflecting strong pro-crypto sentiment. This shift might stem from increased donations and support from cryptocurrency enthusiasts, providing a powerful boost to the industry.
Will ADA Price Reach $1 in 2024?
In the past 24 hours, ADA’s value has surged to $0.3742, an increase of approximately 10%. This growth followed a period of stable trading, showing a significant rise from a recent low of $0.3314.
Bulls are preparing to break through the $0.38 resistance level predicted for Cardano’s price, which could spark further upward momentum in cryptocurrency prices. If ADA breaks this barrier, it might test a more significant resistance level at $0.75. If buying pressure intensifies, ADA’s price might even approach the $1 mark in the expected bullish rebound.
ADA’s daily technical indicators display a strong upward trend, attracting market attention. The Chaikin Money Flow (CMF) indicator, which measures buying and selling pressure, shows a positive value of 0.1. This indicates capital inflow supporting price increases, enhancing ADA’s bullish outlook.
According to Coinglass data, trading activity in Cardano’s ADA derivatives market has significantly increased, with ADA derivatives trading volume soaring, indicating a clear rise in market participants’ interest.
The Relative Strength Index (RSI) also supports the likelihood of a rise to the target price. The indicator has surged to 55 and broken through the signal line, confirming that bullish momentum is in play.
With these bullish signals converging, Cardano still has the potential to move towards $0.404.
In short, ADA short liquidations have surged to the highest level in two months after a 10% rise. Meanwhile, its return to the top ten cryptocurrencies is expected to potentially reignite positive investor sentiment, supporting further upward possibilities. ADA’s recent surge appears to depend on broader market sentiment. Therefore, investors should closely monitor any changes in overall market sentiment to confirm the continuation of the upward trend.
