Cardano [ADA] reached a five-month high of $0.27 after a 10% daily gain, trading around $0.26 at the time of reporting. The price movement coincided with a 297% increase in spot trading volume, reflecting elevated market activity.
The rally triggered significant liquidations in the derivatives market. CoinGlass data showed $2.1 million worth of short positions were closed during the price jump. Despite these losses, bearish positioning remained entrenched as traders continued deploying capital into derivatives.
Open interest in ADA futures surged 18% to $635 million, while derivatives volume jumped 355%. Futures inflows reached $337 million against $321 million in outflows. However, the long-to-short ratio fell to 0.71 across tracked exchanges, indicating a bearish skew persisted among traders even as prices climbed.
Exchange deposit activity presented another dynamic. Cardano's spot netflow remained positive for two consecutive days at approximately $1.34 million, up from $1 million the previous day. Positive netflow indicates more coins flowing into exchanges than leaving, potentially positioning holders to sell.
Technical indicators offered mixed signals. The altcoin's True Strength Index formed a bullish crossover at 24, suggesting strengthening upside momentum. Cardano also broke above its 20-day exponential moving average at $0.24, supporting the bullish case.
Support and resistance levels will likely determine the path forward. Holding the $0.24 level near both the 20-day and 200-day moving averages would preserve the bullish structure. A break below $0.24 could open the way toward $0.22. On the upside, sustained buying pressure could test $0.28 resistance, with $0.30 coming into view if shorts continue closing positions.
