Is Cardano finally catching up with Bitcoin, Ethereum’s uptrends
The last few days have been quite rough for Cardano. Just recently, ADA lost its third position on the rankings board to BNB. Since then, its price has mostly continued to shed value.
Bitcoin and Ethereum, on the other hand, have registered upticks of 12%-16% in the last 7 days alone. Given the low correlation that Cardano shares with the market’s large-cap alts, the recent ‘negative’ reaction on its price charts comes as no surprise.
Nevertheless, quite a few intriguing trends have been observed of late, opening the doors for a price-trend reversal.
Time to change gears
Traders’ interest with respect to Cardano has evidently been picking up. The OI value, at press time, was already at its one-month high level [$747.33 million], underlining the brewing speculative interest.
Parallelly, the number of leveraged longs has also been increasing. Thus, it can be inferred that traders are gradually becoming bullish on Cardano at its current price levels.
The funding rate has also been hovering in the positive territory of late, re-emphasizing the bullish sentiment of market participants. The funding curves of all major exchanges — Bitgate, OKEx, Huobi were seen pointing north, at the time of writing. The trend, however, looked the most solid on Huobi.
The positive rates across exchanges suggest that traders have been paying a premium to keep long positions open. If the degree of positivity intensifies in the next few trading sessions, ADA’s price will likely inch up.
The number of long liquidations too, in effect, was seen shrinking in size. This highlighted that the Futures market has started supporting traders who are advocating the price-rise perspective.
Given the ‘decoupled’ narrative associated with Cardano, the aforementioned data doesn’t really make sense. Alas, looks like traders are currently in the mood to reverse ADA’s downtrend.
What’s even more bullish for Cardano?
To make things better, Cardano’s on-chain metrics also seemed to be getting back in shape. The NVT, for instance, has registered three spikes on its charts since 10 October. The best part is, it has been able to maintain those levels without succumbing back to its September lows.
This essentially means that Cardano’s network valuation has been outpacing its transactional volume — representing legitimate growth. This is, again, kind of bullish.
What impact will this have on ADA’s price, however? Well, at press time, it seemed the bulls had finally entered the fray. On the back of Bitcoin’s appreciation and the broader market’s uptrend, ADA was heading north too. In fact, it was up by over 6.5% on the 24-hour charts.
How long will this be the case, however? Only time will tell.