While most cryptocurrencies in the top 10 are struggling due to short-term corrections, Cardano (ADA) quietly maintains its position with slight gains.
This altcoin has extended its price increase after bouncing off the support area of $0.515 at the end of July.
ADA's price could reach $1.15
Cardano has broken above the resistance level of $0.938 on the daily chart, thereby providing a more positive bullish structure compared to many coins in the same group.
The price increase seems to be far from over, as liquidity clusters are concentrating near the psychological threshold of $1.15.
However, the risk of a correction is still lurking, as profit-taking activity often occurs after such strong increases. Nevertheless, futures data provides a potential cushion for ADA.
Record OI reinforces ADA's bullish technical structure
The activity in the ADA futures market has also become prominent according to on-chain analysis.
The open interest (OI) of this altcoin has risen to a record level of $1.82 billion at the time of writing, showing that traders still have faith in Cardano despite the overall market weakness.
Moreover, if this confidence is maintained, the increasing institutional capital could push ADA towards the $1.15 threshold, where liquidity clusters are focusing.
Cardano still has warning signals
Not everything is 'rosy'.
At the time of writing, the Stochastic RSI indicator on the daily frame is in the overbought zone, indicating that the upward momentum is stretched.
In reality, the Accumulated Volume Delta (90 days) index from CryptoQuant still leans towards a downward trend, reflecting that some investors continue to reduce their positions.
Where will Cardano go next?
The upcoming trading sessions will be decisive. A clear breakout above the $1.15 mark is likely to confirm ADA's breakout and open up a new upward trend.
However, if it cannot absorb selling pressure from major investors, this token may be pulled back in line with the overall market correction.
As of now, the positive technical structure along with the increasing institutional capital is converging the necessary factors for a strong price rally of ADA.