Cardano: Is this the start of a new rally?

• Cardano’s Funding Rate was around 0.03% at press time.
• ADA’s price has increased by over 2%. 

Cardano [ADA] has witnessed a significant and positive rise in its Funding Rate over the past few weeks, per data from Coinglass.

On the 23rd of December, there was a notable decline in the Funding Rate, dropping from 0.04% during the last 24 hours to around 0.01%, before rising back up to 0.03% at press time.

A positive Funding Rate indicates a bet on a price increase, and a pronounced rise suggests increased optimism among traders.

Is ADA finally following the positive trend?

Cardano’s price chart consistently declined over the past few days, suggesting a potential increase in long liquidations based on press time trends. On the 24th of December, ADA experienced a loss of over 3%, closing at around $0.59.

However, at the time of this writing, the price showed a more positive trend, with a 2% increase, reaching around $0.60. This marked a welcome recovery from the three-day decline, during which it lost about 6% in value.

Source: Trading View

Despite the fluctuations, Cardano has maintained an overall positive trend since early December, which is evident in its moving averages and Relative Strength Index (RSI).

A favorable indicator for a positive price trend was the short-moving average (blue line), which consistently trended above the long one (blue line). The price remained above the yellow and blue lines, reinforcing the positive momentum.

The RSI has also consistently stayed above the neutral line, registering around 60, indicating a robust bullish trend. Despite the ups and downs, Cardano’s chart analysis suggested a generally positive trajectory in recent weeks.

Read Cardano’s [ADA] Price Prediction 2023-24

Cardano maintains TVL above $400 million

Beyond the price trend, another encouraging metric for Cardano is its Total Value Locked (TVL). According to AMBCrypto’s analysis on DefiLlama, the TVL has stayed around $400 million since its upswing in October, despite fluctuations.

As of this writing, the TVL was around $407 million.