- Cardano tests critical resistance, with a $0.71-$1.25 range key for a potential bull market.
- ADA open interest rises by 4%, signaling growing investor confidence and bullish sentiment.
- Long positions dominate the Cardano market, indicating strong optimism for a price breakout.
Cardano (ADA) is on the brink of another critical turning point in its market cycle, challenging the macro resistance level that could define its next major trend. This resistance level now holds the key to ADA’s price movements, with investors anticipating signs of a potential bullish trend.
According to analyst Dan Gambardello, a critical resistance level for ADA is located in the $0.71 to $1.25 range, referring to the area as “bull market doors.” A breakout above this level would be a strong bullish signal on the daily chart, indicating a spike in ADA price. Such a breakout might be swiftly followed by another upward movement, increasing investor attention.
The $1.25 is considered a major resistance level, allowing Cardano to stabilize and start training a real uptrend. If the level is cleared, ADA will have the necessary push to increase its fight against its competitors.
Related: ADA Price Outlook Hinges on Breaking $3 Psychological Resistance Level
Cardano Derivatives Market Surge
In addition to price fluctuations, analysts are closely monitoring ADA’s performance in the derivatives space. The open interest increased by almost 4%, with over 774 million long positions now outstanding, indicating investors’ confidence in ADA. Further, the positive funding rate of 0.0140% also revealed a favourable view for the cryptocurrency.
Over the past four hours, long positions have dominated, accounting for 84.42% of the total market. This has made the long-to-short ratio favourable at 5.41, revealing another sign of optimism for ADA traders.
If Cardano can break over the range resistance, this could pave the way for a strong bull run. This shows that its price trajectory is crucial for investors as the cryptocurrency approaches this number. Further, the upcoming days may prove critical, as ADA approaches this key technical level with bullish momentum continuing to build.
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