Cardano: Of uptrends, volume dynamics, and bullish bets

Cardano’s price soars with consecutive uptrends, breaking records in funding rates while facing volume fluctuations. Will ADA’s bullish momentum persist?

• ADA continued its uptrend for the fourth consecutive day.
• ADA’s funding rates hit the highest point in the month.

Cardano’s [ADA] price has recently experienced a remarkable increase. Alongside this positive price trend, one important metric reached its highest point in the past month, while another metric showed a neutral signal.

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ADA sees consecutive uptrends

Over the past four days, Cardano has consistently experienced upward price trends, reaching its highest increase of over 3% on 21 October. These consecutive uptrends have led to a transition into a bullish trend, as confirmed by the Relative Strength Index (RSI).

Prior to this shift, ADA had been trending below the neutral line, primarily due to a six-day consecutive decline at the start of the month. 

Additionally, at press time, Cardano maintained its position above the neutral line, and it is trading at approximately $0.2, with a price increase of less than 1%.

Cardano’s volume seems undisturbed

According to data from Santiment, there do not appear to be any significant shifts in the volume trend. At the time of this report, there was no noticeable spike in volume, and it hovered around $143 million. 

However, a check of ADA’s volume on CoinMarketCap revealed a different picture. Over the last 24 hours, there has been a nearly 17% increase in volume, as indicated by CoinMarketCap.

To sustain the upward trend, a boost in trading volume may be necessary. The absence of corresponding volume with the rising price could potentially result in a price decline. Nonetheless, traders seem to have a more optimistic outlook on the price movement.

Bets on Cardano to see more uptrend in price

As per Coinglass, the sentiment surrounding Cardano was notably optimistic. This positive sentiment was evident in the Funding Rate metric, which indicated positive funding rates. What was particularly noteworthy in the press time Funding Rate was that it had reached a record high.

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At the time of this report, the Funding Rate was approximately 0.01%, marking the highest rate seen throughout the month. This suggested that traders were placing their bets on a continued price increase, further supporting the existing upward trend.

How this bet pans out will be seen in the coming days as the new week commences.