Is Cardano’s 10% Surge Just the Beginning? Why ADA Shorts Could Ignite a Breakout to $0.30 and Beyond
Ever notice how Cardano [ADA] just won’t quit at $0.24? It’s as if that price level is its cozy little fortress, holding steady while ADA cheekily climbs up to a five-month peak of $0.27. By the time you read this, it’s likely hanging out around $0.26 — a neat 10% gain in just a day. What’s fueling this impressive bounce? A staggering 297% surge in Spot Trading Volume, signaling some serious market hustle. But hang on—while the bulls celebrated, the bears got caught off guard, with $2.1 million worth of short positions wiped out. Still, those skeptical shorts aren’t exactly throwing in the towel just yet; they’re doubling down, pumping fresh capital into derivatives. So the question begging to be asked is: why are traders still betting against ADA despite this rally? And could this tug-of-war finally tip the scales in favor of the buyers? Let’s dive deep and unpack what’s really driving Cardano’s latest moves. LEARN MORE.
Cardano [ADA] successfully held $0.24 and climbed to a five-month high of $0.27. At press time, Cardano traded around $0.26, up 10% on the daily charts.
The altcoin’s price jump came alongside a 297% increase in Spot Trading Volume, reflecting higher market activity.
The rally caught bears on the wrong side. According to CoinGlass data, $2.1 million worth of short positions were liquidated. Even so, bearish positioning persisted as more capital entered the market.
Why are traders still shorting Cardano?
Although shorts faced substantial liquidations, traders deployed more capital into the derivatives market.
The altcoin’s Open Interest surged 18% to $635 million alongside a 355% jump in Derivatives Volume. Together, these increases pointed to more outstanding positions and heavier trading activity.
On top of that, Cardano [ADA] recorded $337 million in Futures Inflows against $321 million in Futures Outflows.
However, those flows alone did not establish whether traders favored longs or shorts. The Long/Short Ratio offered a clearer directional clue. It plunged to 0.71, showing a bearish skew across tracked exchanges.
The rally had yet to win over those traders. If Cardano continued climbing, that bearish positioning could leave shorts exposed to another squeeze. Meanwhile, Spot flows presented a different challenge.
Are ADA holders preparing to take profits?
The latest gains coincided with rising exchange deposits. According to CoinGlass data, Cardano’s Spot Netflow remained positive for two consecutive days.
At press time, Spot Netflow stood around $1.34 million, up from $1 million the previous day.
Positive Netflow indicated that exchange inflows exceeded outflows, leaving more ADA available for potential selling. That could reflect preparations to take profits, although deposits alone did not confirm that holders had sold.
If those tokens reach the sell side, they could slow the rally. For now, momentum indicators still favored buyers.
Can ADA clear the $0.28 resistance?
Despite potential selling pressure, the altcoin’s True Strength Index (TSI) formed a bullish crossover. TSI rose to 24, suggesting strengthening upside momentum.
Cardano also climbed above its 20-day Exponential Moving Average (EMA), which stood at $0.24.
These two indicators supported the bullish outlook, although continuation would depend on buyers maintaining pressure.
If further gains force shorts to close, ADA could clear $0.28 and bring $0.30 into view. Holding $0.24, near the 20-day and 200-day EMAs, would help preserve that outlook.
However, sustained Spot selling could weaken support. A break below $0.24 could open the way toward $0.22.
Final Summary
- Cardano gained 10% as $2.1 million in shorts were liquidated, yet derivatives positioning retained a bearish skew.
- ADA could target $0.28 and $0.30 if buyers hold $0.24 and absorb potential Spot selling.
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