Key Points
#etf Speculation and strong market sentiment have recently fueled bullish momentum for Cardano. On-chain metrics and liquidation situations indicate limited selling pressure in the future.
Cardano [#ADA ] is making headlines today, with its stock price rebounding significantly on the charts, up 13.4%, trading at $0.8787. This increase aligns with enhanced market momentum, and its technicals also suggest strong investor activity.
This surge is due to a rekindled optimism across the cryptocurrency market, driven by on-chain and sentiment indicators.
In fact, analysts now point out that various converging factors, from chart-based breakout patterns to steadily rising institutional interest, are potential catalysts for ADA's next significant move.
Although short-term volatility remains a consideration, the combination of bullish technicals and supportive fundamentals is hard to ignore for traders focusing on the $1.50 target.
Cardano is about to break through a key resistance level
The latest rebound in altcoins brings them closer to a decisive breakout point, with chart patterns showing price movements climbing to the $0.88 to $0.90 range.
Historically, this level has acted as strong resistance, and once confirmed as a breakout, it could open up a move to $1.50, as some analysts predict. Particularly, the chart trend shows that since mid-July, lows have been consistently rising—indicating sustained buying pressure.
The alignment of ADA with the upward trend line also suggests strengthening momentum. Therefore, breaking the current resistance level may trigger further acceleration. Traders are focusing on the psychological level of $1 before the next significant price surge, which may support this trend.
Source: X/Ali Charts
Will ETF speculation and positive sentiment drive ADA higher?
Grayscale's establishment of a Delaware trust for ADA has sparked speculation about a potential spot ETF launch, which could attract more institutional participation.
Meanwhile, the weighted sentiment index has sharply turned positive, reaching 1.495, indicating that bullish confidence is strengthening. This combination of institutional expectations and investor optimism typically means fertile ground for sustained increases.
However, market reactions will depend on subsequent buying activity and any regulatory developments.
In the short term, market sentiment and ETF hype may maintain ADA's momentum. Particularly considering that these factors will encourage buyers to test higher resistance levels in the coming trading days.
Source: Santiment
Supply indicators suggest limited selling pressure in the future
On-chain data shows that the MVRV Z score has risen to 0.445. This indicates that holders' profits have increased, but have not yet reached levels that typically trigger large-scale profit-taking.
Cardano's supply flow ratio has surged significantly, indicating a tightening supply environment. These indicators highlight that selling pressure may still be limited, providing space for further price increases.
Moreover, the continued rise of scarcity indicators reflects a market environment where buyers may have to pay higher prices to accumulate.
Thus, if demand continues to rise, the current supply-demand dynamics may support the potential for sustained increases.
Source: Santiment
With bulls gaining the upper hand, short liquidations are increasing
Finally, liquidation data shows that short positions lost over $832,000 in one day, while long positions lost only $439,000. This discrepancy in liquidation amounts suggests that as prices rise, bearish traders are forced to exit, potentially exacerbating short squeezes.
Additionally, the largest losses for shorts were seen on Binance, Bybit, and OKX, highlighting their widespread impact. This liquidation imbalance may amplify upward trends in the short term, as shorts cover their positions and increase buying pressure.
Sustained bullish control in this environment may accelerate ADA's move towards the next resistance level.
Source: CoinGlass