The Cardano price witnessed a slight uptick of 3% during Tuesday’s trading session, currently trading at $0.97. The Bitcoin price sustainability above the $90,000 level has triggered the renewed bullish momentum in the altcoin market. While broader market consolidation persists, the surging derivatives market data shows potential for reversal.
Currently, the ADA price trades at $0.67 and holds a market cap of $34 Billion.
Key Highlights
- The formation of a bullish pennant pattern leads to the current consolidation in Cardano price.
- The ADA price is 9% away from escaping a consolidation since early December 2024.
- The 100-and-200-day EMA stands as key pullback support for crypto buyers.
Cardano Price Consolidation Hints Imminent Breakout
Over the past five weeks, the Cardano price has traded sideways resonating within the formation of a bullish pennant pattern. The chart setup shows an ascending slope displaying the dominating uptrend followed by a temporary consolidation confined with two covering trendlines.
The ADA price rebounded at least twice from both trendlines, indicating the reliability of the setup and the potential influence of future prices. On Monday, the daily chart showed a long-tail rejection candle, the pattern’s lower trendline indicating the intact demand pressure.
A potential rebound could push the asset 9% up to challenge the triangle’s upper boundary at $1.05. A successful flip of the overhead trendline will accelerate the bullish momentum and drive a 60% rally to hit $1.7.
Bullish Momentum Brewing in ADA’s Future Market
The ADA’s futures open interest showcased a substantial bounce from $621 Million to $1.16 Billion— an 86% increase in the last two weeks. This surge in OI signals increased trader interest and activity in the futures market, suggesting growing confidence among market participants for potential price movement, even as ADA’s price action remains subdued.
According to Coinglass data, ADA’s OI-weighted funding rate maintains its positive value of around 0.0097%. This indicates a bullish sentiment among traders, with long positions dominating and signaling expectations of upward momentum in ADA’s price.
However, the Cardano price will prolong the current consolidation until the pennant pattern is intact.
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