After checking above $28,000, Bitcoin fell back to $27,000. returned. Meanwhile, several altcoins are trying to make a comeback from a significant sell-off by whales. crypto analyst Shayan Chowdhury on the revival of the “Uptober” trend Cardano (ADA) One bull create formationHe says he is. A.also available on-chain dataof in favor of buyers states that it is.
Investors’ confidence in ADA is increasing: There is potential for increase
On-chain metrics reveal an increase in profit realization among Cardano investors. this too cryptokoin.comAs you follow from , it was the reason for ADA’s price drop. Data from analytics firm Santiment highlights that AAVE, ADA, and CRV are experiencing significantly higher profit-taking levels among altcoins. The metric in focus is the “daily on-chain transaction volume in profit to loss ratio,” which gives insight into how a crypto’s profit-taking volume stacks up against its loss-taking volume. However, the altcoin price is now preparing for another increase. It shows a strong fight against this metric amid this preparation. As a result, traders are now showing more interest in the activity.
Coinglass data reveals a dramatic increase on the Open Interest (OI) chart, rising from $100 million to $103.6 million, indicating a $3.6 million increase in futures contracts. Notably, traders are currently adopting a bullish position on these contracts. Buyers dominated 50.3% of positions. Additionally, the long/short ratio also increased. Thus, it shifted in favor of buyers with a transaction rate of 1.0129. However, the bears are maintaining an imminent rally, holding off a 49.6% increase in short positions. Additionally, the whales did not completely evacuate their positions. Because the latest major transaction data does not offset the significant $9 billion increase witnessed on October 2. This shows that the altcoin price still has the potential for additional increase.
What’s next for the altcoin price?
Cardano’s price recently experienced a decline from $0.27 following profit booking. However, the downtrend slowed near the $0.25 level as buyers emerged with aggressive buying. As a result, the altcoin price is currently confirming a ‘cup and handle’ formation. At the time of writing, ADA price is trading at $0.263, up over 3.2% on a daily basis.
If the price confirms the pattern and remains above the 20-day EMA, it will signal a shift in market sentiment from selling during rallies to buying during declines. As a result, the bulls will try to send the altcoin price above $0.28. So they will target $0.3 and then an upward trajectory towards $0.32. Conversely, to eliminate the rally, the bears will need to pull the price below the 20-day EMA. Under this scenario, it is possible for ADA price to test the support at $0.25 once again. If this support fails, ADA price is likely to decline towards the important support at $0.23.
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