As a seasoned researcher with years of experience in the cryptocurrency market, I find the recent developments within the Cardano ecosystem quite intriguing. The surge in the Long/Short ratio for ADA suggests a growing optimism among derivatives traders, which could potentially herald a significant price increase.
After successfully undergoing the Chang hard fork, focus has now moved towards Cardano‘s native token, ADA. With a promising uptick observed in a key performance indicator within the Cardano network, there are signs that a substantial price rise for ADA could be just around the corner.
New Metrics Hint At ADA Price Surge
Traders specializing in derivatives for the cryptocurrency Cardano are growing more hopeful about a possible significant increase in the value of ADA. Based on statistics from Coinglass, the Long/Short ratio for Cardano over the last week hovered approximately at 2.91.
The Long-Short ratio is a crucial metric that reflects the buying and selling dynamics in futures contracts. This ratio compares the volume of long buying positions to short selling positions, whilst also providing valuable insights into the overall market sentiment and expectations.
With Cardano’s Long/Short ratio reaching a high of 2.91, this suggests a significant boost in optimism towards the cryptocurrency. Generally, when the Long/Short ratio for a crypto falls below 1, it indicates a bearish outlook, meaning derivatives traders anticipate the token’s price to decrease.
Instead of 1, a ratio greater than 1 suggests a positive or bullish perspective among traders, as they are predominantly expecting an increase in price. For instance, a ratio of 2.91 for Cardano implies that approximately 75% of traders anticipate the cryptocurrency’s value may go up, while just 25% foresee a potential decrease.
Currently, Cardano’s Long/Short ratio is 0.89, but on platforms like Binance and OKX it exceeds 2.0. At the moment, Cardano is being traded at approximately $0.33, representing a 2.73% drop in the last 24 hours, as per CoinMarketCap data.
From January onward, Cardano’s price movement has mainly stayed within a range, showing a notable lack of growth compared to other cryptocurrencies which have experienced substantial price increases. However, with the completion of the Chang hard fork, there’s potential for a new surge in momentum that could potentially push up the value of ADA.
Multiple experts believe that the Chang update will significantly enhance the functionality of the Cardano blockchain, leading to optimistic feelings and possible price increases due to its innovative governance structure.
Analyst Says “Cardano Bull Market Has Not Started”
On August 27th, a well-known crypto analyst going by the name ‘Sssebi’ (previously on Twitter) predicted a significant price increase for Cardano. Sssebi pointed out that while Cardano’s bull market hasn’t officially started yet, when it does, it could potentially generate considerable market activity and result in substantial profits for ADA holders.
The analyst anticipates that the cost of ADA might climb from $1 to $5 within a short period, experiencing a gradual yet robust surge in value. He revealed that once Cardano’s price surpasses bearish patterns and starts ascending, it could potentially continue its growth at an accelerating pace.
Furthermore, Sssebi anticipates that ADA might exhibit significant volatility, with its daily price fluctuations ranging between 30% and 40%. This volatility could persist over multiple consecutive days.
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2024-09-02 22:42