As $ADA continued to extend its recovery from June lows, Cardano produced one of its strongest trading sessions in weeks, with daily trading volume rising by more than 33%. Bulls are enjoying their first significant advantage in months as the asset breaks above a number of important technical resistance levels.
$ADA is rising
After successfully regaining both the 26-day and 50-day exponential moving averages, the daily chart displays $ADA rising to roughly $0.197. More significantly, the price is currently testing the declining 100-day EMA at $0.197, a level of resistance that has halted almost all attempts at recovery since the start of the year. This action is backed by a significant increase in participation, in contrast to earlier rallies.
Major exchanges saw an increase in trading volume, but Binance continued to be the most popular platform, handling over $325 million in futures activity in the last day. Strong activity was also seen on Bybit and OKX, indicating that the shift is widespread rather than specific to one exchange.
Simultaneously, open interest has increased on a number of venues, suggesting that new capital is entering the market rather than simply shifting existing positions.
Additionally, derivative positioning has become more favorable. While top traders' position ratios are still fairly balanced, long-short account ratios on Binance and OKX are still above 1, suggesting that more traders are positioning for further upside.
The bullish picture is further supported by liquidation data, which shows that over the last 24 hours, short liquidations have outpaced long liquidations due to sellers being driven out during $ADA's advance.
On-chain activity remains high
The renewed interest seems to be a result of several factors. After weeks of volatility, the overall cryptocurrency market has stabilized, enabling large-cap altcoins to outperform Bitcoin in relative terms.
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Cardano is also benefiting from improving sentiment surrounding ecosystem development, including continued work on Leios scaling, interoperability initiatives such as CANS, and upcoming Project Catalyst funding designed to accelerate application development and on-chain activity.
These advancements have contributed to reestablishing confidence that network expansion may eventually result in increased blockchain usage. Technically, $ADA is about to reach a turning point. The RSI has risen toward 70, indicating both strong momentum and the possibility that the rally will continue in the near term.
Cardano may create its strongest bullish structure since the first quarter of the year if buyers are able to generate a clear close above the 100-day EMA with sustained high volume. For the time being, the dramatic rise in volume gives $ADA the confirmation it has lacked during prior rebounds.