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Cardano price analysis Do you continue to climb up to a level of $ 1?

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The Cardano (ADA) is witnessing a continuous bullish momentum this week, increasing by more than 40% during the past ten days, and approached a major resistance level.

At the same time, the derivative data reveals a clear increase in the purchase centers in conjunction with a noticeable increase in the size of the open contracts, indicating the increasing confidence between the traders in the continuation of the rising direction.

Open contracts rise and feed optimism

In the world of digital derivatives, Open Interest indicates the volume of capital associated with active contracts without settlement, and the height of this indicator reflects the increasing interest of investors in the currency, which pumps additional liquidity into the market.

According to Coinglass data, the volume of open contracts on Cardano jumped by 16.3% in just 24 hours, to reach $ 1.44 billion, a level approaching the record recorded in January at $ 1.5 billion.

This intense activity is accompanied by positive financing for long centers, as the likely financing rate reached 0.0219%, which indicates that traders are ready to pay additional costs to retain purchase centers in an indication of increasing the demand for purchase.

Increased purchase centers support the rising trend

The data reflects the continuation of the market’s bias towards purchase, as long deals constituted 50.02% of the total trading volume between buyers and sellers, compared to 48.72% the day before.

This slight positive transformation enhances expectations of price rise in the short term, while traders maintain their optimism about the future performance of the currency.

Technical analysis is likely to continue ascending

Cardano recorded during Thursday’s trading an increase of 7% bypassing the level of $ 0.80, and achieving its highest level in more than a month, and this rise coincided with the price of 50% of the Fibonacci correction at $ 0.8233, taken from the peak of December at 1.3264 to the bottom of April at 0.5110 dollars.

And if the currency is able to penetrate this barrier with a strong daily closure, it may continue to rise to the next Fibonacci level at 0.9214, which opens the way to target $ 1.

Little moving averages of 200, 100 and 50 days, all of which are witnessing a rising trend, which enhances the possibility of positive intersections (Golden Cross) that supports continuing bullish momentum, and these averages turn into important support areas in the event of a decline, respectively, respectively at 0.6894, 0.6760 and 0.6581 dollars.

But the relative indicator of force (RSI) shows a high reading of 79, indicating the entry of the purchasing saturation area, which may lead some investors to be careful, as the possibilities of pricing correction may increase.

However, the MACD index still shows a positive breadth, as both the Maccack line and the signal line are located above the zero line, while the green histogram columns began to increase again, indicating the return of the rising momentum strongly.

The possibilities of decline are existing but limited

Despite the positive technical signals, Kardano’s inability to exceed the level of $ 0.8233 may lead to a decline towards the moving average for 200 days at 0.6894, which represents the first strong support zone in the event of reflection.

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