- Sentiment around ADA remains upbeat despite support from bear technical indicators.
- Longs have taken over from shorts the baton of liquidations.
Cardano [ADA] is one of the best performing cryptocurrencies on a Year-To-Date (YTD) basis out of the top ten by market capitalization. While the project boasts a strong community and a solid development team, its 90-day performance lags behind with a single-digit increase.
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Locked in the closet
But for the past seven days, the token has been stuck in consolidation as it hovered around $0.40. Despite this, traders seem confident that a rally was in the making. According to the IntoThe Block datatraders’ “In the Money” perception was optimistic.
Interestingly, it was even better with the “concentration” sentiment heavily dominating the bears. Both metrics are based on the number of open bid and demand orders by measuring real-time supply and demand.
With the market depth in favor of the bulls, this means traders have filled strong volumes which could result in a rise in price. But is ADA in pole position to succumb to these expectations?
Well, the technical outlook showed that ADA could be locked into a dilemma of direction, based on the exponential moving average (EMA). At the time of writing, the 20 EMA (blue) was tied for the 50 EMA (yellow).
For short-term projection, this means ADA could get stuck in it place of consolidation for a while. However, the 200 EMA (orange) gave a glimpse of what to expect in the medium to long term.
At the time of writing, there was an upward crossover from the 20 EMA through the 200 EMA. And as such, it holds the ability to establish a new uptrend in the long run.
However, the Awesome Oscillator (AO) which was 0.015 indicated that there was still a heated context between buyers and sellers. But since the red bars remained clearer than the opposite number, it means ADA’s momentum was largely able become bearish.
From the determination and unwavering faith of traders
According to the funding rate, Santiment showed it was 0.01%. When the financing rate is positiveit means that long positions were willing to pay short positions.
How many 1,10,100 ADAs worth today?
And there is more demand for long positions in the derivatives market. Therefore, this confirmed traders’ bias as they turned sentiment into action. Meanwhile, all has not been rosy for traders with such a view.
According to Coinglass, the amount is of ADA liquidations had reached $528,000 in the past 24 hours. While shorts took the brunt on April 27, longs have filled the gap at a rapid pace.