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- Cardano (ADA) has been spotted staging a rebound as its long-to-short ratio moves to 1.13.
- An analyst has predicted that ADA could easily retouch the $1 level in the short term and continue to hit $8.
Cardano (ADA) was one of the few coins that reacted massively to Bitcoin’s (BTC) explosive ascent to a new all-time-high at $123k. Data suggests that ADA closely followed this trajectory until external factors forced a nosedive from a monthly peak of $0.92 to $0.71.
At the time of writing, ADA was down by 11% on its weekly price chart. However, its daily chart suggests a rebound with 2.5% gains recorded to send the price to $0.74.
Derivatives Suggest a Rebound for ADA
Confirming a potential flip in sentiment from bearish to bullish, CoinGlass’s OI-Weighted Funding Rate has disclosed that the majority of traders are currently betting on an upsurge.
On Monday, July 4, this metric had made a surprising shift to a positive rate of 0.0053% from the negative rate recorded the previous day.
Confirming this bullish position, the long-to-short ratio of ADA has also moved to 1.13, suggesting that traders are anticipating a rally. Most importantly, this level is the highest recorded in the last 30 days.
Regardless, the ADA’s Relative Strength Index (RSI) is currently reading 47. While this confirms bearish sentiment, it however, points towards the neutral zone. According to analysts, the asset could likely hit $0.84 if it sustains the present momentum and extends the rally.
As noted in our recent news coverage, analyst Master Ananda also believes that ADA is “still very cheap” at the current price. According to this analyst, the asset could easily reach $4 and subsequently target the $7 and $8 levels. This aligns with our recent report that ADA could easily break above the $1 resistance point in the short term.
For analyst Hailey LUNC, the asset could likely reach $1.2 in the short term. From there, it could continue to hit $3.25. Per Hailey Lunc’s analysis, this move could be fueled by the expansion of the Cardano ecosystem. However, failure to hold above the current level could also be fatal as the asset may plunge below the crucial support level at $0.70.
Cardano Foundation Speaks on FCA’s Crypto Regulation Approach
Outside the circumference of the derivative market, market participants have become increasingly interested in the asset following reports that INATBA and the Cardano Foundation have joined the IOTA Foundation to engage the UK’s regulatory watchdog, Financial Conduct Authority (FCA), to soften the crypto regulation approach, as discussed earlier.
An excerpt of the FCA report reads:
All cryptoasset activities, whatever their underlying technology, infrastructure or governance, which pose the same risks as centralised services should have the same regulatory outcomes…
Responding to the FCA’s proposals to regulate crypto asset trading platforms, crypto asset lending and borrowing, etc, these crypto entities called for a reconsideration of the decision to impose the same rules on both centralized and decentralized asset platforms.
Apart from this, the Cardano Foundation has also launched a new Tool Compass that seeks to increase accuracy and reduce development time, as highlighted in our recent needs brief.
