Cardano Price Forecast: ADA set for 20% rally as bullish bets increase
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Cardano price extends its rally on Monday after gaining more than 13% last week.
On-chain metrics suggest a bullish picture as ADA’s long-to-short ratio reached its highest in over a month.
The technical outlook and funding rates data suggest a rally continuation, targeting 20% additional gains.
Cardano (ADA) price extends its rally on Monday after gaining more than 13% last week. On-chain metrics suggest a bullish picture as ADA’s long-to-short ratio reached the highest level in over a month. The technical outlook and funding rates data suggest a rally continuation, targeting 20% additional gains.
Cardano bulls aim for 20% gains
Cardano price found support around its 61.8% Fibonacci retracement level (drawn from the August 5 low of $0.27 to the December 3 high of $1.32) at $0.67 last week. It rose 13.21%, closing above the weekly resistance level of $0.74. At the start of this week on Monday, it continued to rally by 4.7%, trading at around $0.80.
If the weekly level at $0.74 holds as support, it could extend the rally by 22% from its current levels to retest its January 30 high of $0.98.
The Relative Strength Index (RSI) on the weekly chart reads 53, bouncing off from its neutral level of 50 last week and indicating a maintenance of bullish momentum.
ADA/USDT weekly chart
Another bullish sign is Coinglass’ ADA long-to-short ratio, which reads 1.09, the highest level in over a month. This ratio above one reflects bullish sentiment in the markets as more traders are betting for the asset price to rise.
ADA long-to-short ratio chart. Source: Coinglass
According to Coinglass’s OI-Weighted Funding Rate data, the number of traders betting that the price of ADA will slide further is fewer than that anticipating a price increase.
This index is based on the yields of futures contracts, which are weighted by their open interest rates. Generally, a positive rate (longs pay shorts) indicates bullish sentiment, while negative numbers (shorts pay longs) indicate bearishness.
In the case of ADA, the metric increased from -0.0007% on Sunday to 0.0016% on Monday, reflecting a positive rate and indicating that longs are paying shorts. This scenario often signifies bullish sentiment in the market, suggesting potential upward pressure on Cardano’s price.
ADA OI-Weighted Funding Rata chart. Source: Coinglass
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* The content presented above, whether from a third party or not, is considered as general advice only. This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.
