Cardano Skyrockets Over 40% – Funding Rate Suggests Further Upside
2024-11-10

Cardano (ADA) has made a significant move, breaking above the long-standing $0.40 resistance and reaching a key supply level at $0.45 after an impressive 42% surge over the past few days. This breakout is sparking fresh optimism among investors who have been waiting for ADA to demonstrate sustained strength. 
According to recent data from Coinglass, ADA’s funding rate has risen to levels not seen since June, indicating strong demand and suggesting that this rally could only be the beginning of a larger trend.
This rising funding rate points to increased leverage in the market as traders grow more bullish on ADA’s potential for further gains. If ADA holds above the $0.40 mark, it could establish a new support level, reinforcing its recent uptrend and opening the door for even higher targets. 
However, the next few days will be crucial as the crypto market continues to rise, with key resistance and support levels in play. As traders closely watch ADA’s price action, it remains to be seen if this surge can sustain the momentum and push Cardano toward new highs.
Cardano Is Starting To Rise
Cardano has staged a powerful rally after months of selling pressure, marking its first major bullish move recently. With a push above crucial resistance levels, ADA has not only shaken off its downward trend but has also set up a new bullish price structure.
Recent data from Coinglass underscores this bullish sentiment, showing that the open interest (OI)-weighted funding rate for ADA has reached its highest level since June. This surge in funding rates is a strong indicator of increased optimism among investors, as traders are willing to pay a premium for long positions, betting on Cardano’s continued rise. The positive funding rate implies that ADA demand is on the rise, with market participants eager to enter bullish trades.
This breakout above key levels is attracting substantial interest from both retail and institutional investors, who are now positioning themselves for potential further upside. Many analysts suggest that this pump could serve as the catalyst for a more extended bullish continuation if Cardano can maintain its momentum. While ADA will need to establish new support at its breakout levels to confirm this trend shift, the recent uptrend signals renewed confidence in Cardano’s long-term potential.
As ADA continues to push upward, traders are now watching closely for a consolidation phase, which could provide the fuel needed for the next leg of this rally. If support holds around these levels, Cardano could be on the brink of a broader uptrend, making it a key altcoin to watch as the market recovers and interest in high-potential assets resurges.
ADA Price Action: Key Levels To Watch
Cardano (ADA) is currently trading at $0.43, following a strong surge that took it above the 200-day moving average (MA) at $0.39—a crucial level indicating long-term strength and trend reversal. This move above the 200-day MA suggests that bulls are in control, setting the stage for potential further gains. To sustain this momentum, it’s essential for ADA to hold above this moving average as support, reinforcing the bullish outlook.
The recent price action remains very positive, with ADA consistently pushing to challenge new supply levels. The next key target is $0.458, a resistance level that, if broken, could open the door to even higher price marks. However, a brief retracement to lower demand levels around $0.415 would be a constructive move, allowing ADA to build a solid foundation before another potential rally.
This controlled pullback could attract fresh buying interest and provide the necessary fuel for ADA to move further upward. Overall, with price action aligning with key technical indicators, ADA’s recent surge above the 200-day MA highlights a promising shift for the asset, with further bullish developments likely if critical support levels hold firm.
Featured image from Dall-E, chart from TradingView