Cardano Turns Bullish On-Chain – Buy Signal for ADA

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Author: Market Analyst

Posted:

  • On September 17, ADA whales transferred an impressive 19.5 billion ADA tokens.

  • If ADA manages to close a weekly candle above the $0.35 mark, it could potentially rally by 20% to reach $0.42.

The overall market sentiment leans bearish at the moment; however, Cardano [ADA] on-chain metrics like the Long/Short Ratio and Futures Open Interest are indicating potential bullish trends.

Despite these promising on-chain signals, ADA has faced challenges in building momentum following a slight price decline of 1% over the past day.

Data from Coinglass reveals that as of now, ADA’s long/short ratio stands at $1.0167, reflecting bullish sentiment among traders at this time.

The futures open interest climbed by 3% over the previous day and has consistently grown since early September 2024.

Source: Coinglass. Traders often rely on indicators like rising open interest combined with a long/short ratio exceeding one to make trading decisions. The data suggests that when traders observe a long/short ratio greater than one, they tend to favor building long positions.

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