Cardano (ADA) maintained its upward momentum near the $0.80 mark on Friday, following an impressive 5% bounce in the past 24 hours. This recovery was driven by a surge of interest from traders, reflected in the 12% increase in total open interest (OI) in just one day.
The on-chain picture also reinforces positive expectations for ADA: the number of active addresses continues to rise, while the volume in profit/loss ratio is clearly leaning towards profit. These signals indicate that capital is returning and investor confidence is strongly recovering around the current price level.
Cardano network activity is booming, reflecting increasing demand
According to data from Santiment, the number of Unique Active Addresses (UAA) for Cardano in the past 24 hours rose to 30,900 on Friday, compared to 29,600 addresses recorded a day earlier. This steady increase indicates that the network is attracting more users, reflecting a growing level of activity and usage.
Notably, the upward trend of UAA coincides with ADA's price recovery - a sign that interest in Cardano is becoming stronger from both user and investor perspectives.
Additionally, the volume in profit/loss ratio also recorded a leap, reaching 4,808 on Friday - nearly three times the figure of 1,790 from the previous day. This ratio indicates that most transactions are being executed at prices higher than the average price of the token last moved - a clear signal that demand for ADA and activity on the Cardano network are increasing significantly.
ADA derivative data signals optimism: Buyers are in control
ADA's derivative indicators are showing clear positive signals. According to data from CoinGlass, OI has increased by 12% in the past 24 hours, reaching $1.43 billion - indicating that new capital is flowing into the market.
Typically, an increase in open interest (OI) accompanied by strong price momentum is a sign that new capital is entering the market and investors are reinforcing their confidence in the uptrend. When the funding rate indicator also rises concurrently, this further confirms that the advantage is clearly leaning towards the buyers.
Specifically, the funding rate based on OI has increased from 0.0085% on Thursday to 0.0107% - indicating that buyers are willing to pay higher fees to maintain long positions. This signals that the market strongly supports ADA's short-term bullish expectations.
ADA breaks out of the downtrend channel, preparing for the next upward move
ADA has just escaped from the downtrend channel on the 4-hour timeframe, marking a new positive step in the recent recovery. At the time of writing, ADA is trading around $0.80.
The price level of $0.78 - previously a resistance zone of the downtrend channel - has now turned into new support, reinforcing the foundation for ADA's potential upward movement. If buying pressure remains stable, ADA could aim for the next target at the $0.85 zone - a price level last tested on July 23.
Technical signals are leaning towards an upward trend: the MACD indicator shows positive momentum with the signal line moving up and the green histogram expanding - reflecting a strengthening uptrend. However, the RSI is currently at 69 and moving sideways - close to the overbought zone - suggesting that the market may need a short correction before establishing a new peak.
Conversely, if ADA loses the support level of $0.78, selling pressure could push the price back to the 100-period EMA line, currently around $0.75 - an important technical threshold to watch.
