On-chain metrics revealed that 72.30% of ADA traders are betting on the long side, while 27.72% are on the short side.
AMBCrypto’s chart analysis suggested that ADA remained bullish, but was also facing mild selling pressure.
After staying in a prolonged downtrend, Cardano [ADA] has turned bullish and appears poised for a significant upside rally.
This shift in momentum is drawing notable attention from traders and crypto experts alike.
Given the current market sentiment, a well-followed crypto expert shared a post on X (formerly Twitter), including an ADAUSDT 3-Day chart that shows the asset moving within a descending channel pattern.
In the post, the expert noted,
“Cardano’s ADA could confirm a bullish breakout with a sustained close above $0.77.”
Cardano’s TVL soars, major rally imminent?
Besides the expert’s bullish view on ADA’s upside momentum, Cardano’s Total Value Locked (TVL) is steadily rising, indicating a revival in on-chain activity.
A DEX aggregator named DEX Hunter recently shared a post on X, noting that Cardano’s TVL is curling upward and heading toward a new all-time high.
This uptick in TVL comes following the recent breakout of the descending trendline, which had previously provided consistent resistance to the ADA price.
Experts and analysts believe that whenever TVL soars, it tends to drive the asset’s price higher as well.
ADA’s price action and technical analysis
At the time of writing, ADA was trading near $0.70 and has recorded a price surge of over 6.50% in the past 24 hours.
This impressive price surge following the breakout has attracted both investors and traders during the same period.
Data from CoinMarketCap reveals that this surge in participation has led to a 45% increase in trading volume compared to previous days.
Technical analysis by AMBCrypto indicates that ADA remains bullish but is currently facing mild selling pressure at the 200-day Exponential Moving Average (EMA) on the four-hour chart.
This resistance level coincides with a horizontal resistance zone expected to resurface around June 2025.
Historically, the last time ADA hit this level, it experienced a pullback of over 10%.
However, sentiment has now shifted, as the asset has broken out of its prolonged descending trendline and shown strong upward momentum in recent sessions.
Source: TradingView
Cardano: Bullish and bearish scenarios
Based on recent price action, ADA could gain over 18.5% if it closes a 4-hour candle above $0.71, potentially rising to $0.85.
However, failure to break above $0.71 may trigger a downward move of around 10%, pushing the price toward $0.62.
Currently, sentiment is tilted toward the bulls.
According to Coinglass, the Binance Long/Short ratio sits at 2.61, signaling that traders are strongly favoring long positions and expecting further upside.
Source: CoinGlass
This metric further reveals that 72.30% of top traders are currently betting on the long side, while 27.72% are on the short side.
Despite the ongoing selling pressure, this data helps clarify that the overall market sentiment remains bullish.