Cardano Eyes Sell Wall Break as Long-Term Holders Hit Record

Key Insights:

• Over 15 billion ADA tokens remained untouched for the past year, hinting at long-term potential.
• ADA is poised to breach a key hurdle of $0.85; if this level is cleared asset may record a 48% price uptick.
• ADA funding rate reaches an all-time high, showing strong bullish sentiment among traders.

Cardano (ADA) has finally engulfed all four candles that formed during the daily timeframe by climbing by 7%. With this “God candle,” the asset appears to have finally broken its key hurdle of $0.85, which had been stopping it from rallying.

At press, the Cardano price has jumped over 7% in the past 24 hours and is $0.8365. With an impressive price uptick and a shift in price action, investors and traders are gaining momentum. ADA’s trading volume during the same period has increased by 30% compared to the previous day.

Cardano (ADA) Price Action and Technical Analysis

According to expert technical analysis, ADA is poised to shift its overall trend from a sideways pattern to a bullish uptrend. In the daily chart, the asset approached the $0.85 level again after failing to hold it in the recent price uptick.

This time, ADA has broken out of a descending trendline and is on track to close a daily candle above the $0.85 level.

Based on recent price action and historical patterns, if ADA successfully breaks above the key level and closes a daily candle above $0.85, it could pave the way for a 48% surge.

If this occurs, Cardano’s price may reach the $1.20 level. However, this prediction may not be easy to achieve, as ADA could face several hurdles during its upward momentum.

On the other hand,  if the momentum fades and ADA fails to break the key level, it may trigger either a sideways move or price consolidation before the next leg up.

Despite impressive performance and a bullish breakout, the technical indicator Supertrend is still in red and above the ADA price, which hints that the asset is in a downtrend and might be facing strong selling pressure.

The asset’s relative strength index (RSI) stands at 62, indicating that it is near its overbought territory but has enough room to continue its upside momentum, which could turn on the ADA rally.

Bullish On-Chain Metrics

Recent onchain data strongly strengthens this bullish outlook of Cardano (ADA). An on-chain tracker, TapTools, recently shared a post on X that said that over 15 billion ADA tokens have remained unchanged in the wallet for over a year.

Additionally, this is the largest share of supply in history. These substantial tokens by these holders show strong bullish potential for ADA tokens.

Not just that, another on-chain metric from Coinglass, which TapTools shared, is the funding rate. In the recent post, the tracker shared that the Cardano funding rate has surged to its all-time high.

Given the current market sentiment, this metric hints that traders are paying the largest premium on record to hold long positions, signaling extreme bullish positioning in the derivatives market.

At press time, while exploring the traders betting on Coinglass, it appears that ADA seems to be facing a strong hurdle at $0.865 level.

Here, traders have built $10.66 million worth of short positions. The breakout of this level could only bring a quick rally. On the other hand, traders are over-leveraged at $0.813, $0.765, and $0.747, where they have built $10.27, $36.50, and $55.44 million in long positions.

When combining all these metrics, bulls dominate and push ADA prices to a higher level. However, this could be validated if the asset breaches $0.865 level.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.