Cardano (ADA) Defies Market Meltdown: Bullish Uptrend Intact Despite Crypto Carnage
While Bitcoin and Ethereum bled double-digits last week, Cardano stood tall—ADA's chart paints a rare green streak in a sea of red. Here's why the 'Ethereum killer' might be the cockroach of crypto: impossible to flush out.
The Unshakable Uptrend
ADA didn't just survive the crash—it barely flinched. Trading volume spiked 40% as whales accumulated at key support levels, betting against the broader market panic. Technicals show a textbook bullish flag formation, with RSI cooling off from overbought territory just in time for the next leg up.
Institutional Whisper Network
Rumors swirl about a Fortune 500 company quietly testing Cardano's Hydra scaling solution (because apparently paying $50 per Ethereum transaction isn't 'enterprise-ready'). Meanwhile, Charles Hoskinson keeps tweeting Byzantine poetry—which somehow translates to 15% price bumps.
The Cynic's Corner
Let's be real—this resilience probably says more about crypto's broken correlation matrix than ADA's fundamentals. But in a market where 'number go up' is the only theology that matters, Cardano's chart might as well be the Book of Revelation.
Rising bullish bets on ADA boost Open Interest to a record high
Cardano withstood the impact of a broader market pullback on Thursday, thanks to higher-than-expected US July PPI data, which pointed to increased inflation. Traders remain interested in Cardano derivatives as the ADA Open Interest (OI) hits a record high of $1.77 billion at press time on Friday, up from $1.57 billion the previous day.
ADA Open Interest. Source: Coinglass
ADA Open Interest refers to the US Dollar (USD) value of all active cardano futures and options contracts. The recent $200 million increment points to increased capital inflows and traders’ interest.
Amidst the capital inflows, bullish bets are on the rise, based on the taker buy/sell volume. Over the last three days, a steady rise in long positions has now accounted for 49.69% of all active positions, up from 48.07% on Wednesday, reflecting increased Optimism among traders.
Cardano Long/Short Ratio Chart Source: Coinglass
Cardano breakout rally eyes $1
Cardano maintains an uptrend as it withstands the market correction on Thursday, closing at $0.9258, a positive outcome, after retracing from the $1.0193 high. The uptrend surpassed a long-standing resistance trendline formed by connecting the December 3 and March 3 highs, as well as the 50% retracement level at $0.9187, drawn from $1.3264 on December 3 to $0.5110 on April 7.
If Cardano upholds a close above this level, it could extend the rally to the 61.8% Fibonacci level at $1.0149.
The Moving Average Convergence Divergence (MACD) indicator displays a successive rise in green histogram bars, suggesting increased bullish momentum. Additionally, the Relative Strength Index (RSI) stands at 69, on the border of the overbought zone, as buying pressure increases.
ADA/USDT daily price chart.
Looking down, a pullback below the 50% retracement level at $0.9187 could retest the broken trendline near $0.8898. However, a daily close below the trendline WOULD invalidate the breakout rally.
