Cardano: Traders choose sides but could ADA be ready for a bull run?
- The sentiment around ADA remains bullish despite technical indicators support for the bears.
- Longs have taken the baton of liquidations from shorts.
Cardano [ADA] has been one of the top-performing cryptocurrencies on a Year-To-Date (YTD) basis out of the top ten in market capitalization. Although the project boasts a strong community and solid development team, its 90-day performance has been left with a single-digit hike.
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Trapped in the closet
But over the last seven days, the token has been trapped in consolidation as it ranged around $0.40. Despite that, traders seem to trust that a rally was in the works. According to the IntoThe Block data, the “In the Money” perception of traders was bullish.
Interestingly, it was even better with the “concentration” sentiment which severely dominated the bears. Both metrics are based on the number of open ask and bid orders by measuring real-time demand and supply.With the market depth in favor of the bulls, it means traders have filled strong volumes capable of resulting in a price appreciation. But is ADA in pole position to succumb to these expectations?
Well, the technical outlook showed that ADA could be locked in a dilemma of direction, based on the Exponential Moving Average (EMA). At the time of writing, the 20 EMA (blue) was positioned at the same spot as the 50 EMA (yellow).
For short-term projection, this implies that ADA could linger in its place of consolidation for a while. However, the 200 EMA (orange) gave a glimpse of what to expect in the mid to long term.
At press time, there was an upward crossover of the 20 EMA through the 200 EMA. And as such, this possesses the capability to establish a new uptrend in the long term.
However, the Awesome Oscillator (AO) which was 0.015 signaled how there was still a heated context between buyers and sellers. But since the red bars remained more evident than its opposite number, it means that ADA’s momentum could largely become bearish.
Of traders’ resolve and unwavering faith
As per its funding rate, Santiment showed that it was 0.01%. When the funding rate is positive, it means that long positions were willing to pay short positions.
How much are 1,10,100 ADAs worth today?
And there is more demand for long positions in the derivatives market. Therefore, this confirmed traders’ bias since they had turned sentiment into action. Meanwhile, it hasn’t all been rosy for traders with such a viewpoint.
According to Coinglass, the amount of ADA liquidations in the last 24 hours had reached $528,000. Although shorts bore the brunt of the wipeout on 27 April, longs have been filling the gap at a rapid rate at press time.