• Cardano (ADA) surged over 6% in the past 24 hours, supported by a rise in on-chain activity, including a Long/Short Ratio above 1.
• If ADA price can close above $0.35, analysts anticipate a potential 20% price rise to $0.42.

Amid the bullish narrative around the Federal Reserve rate cuts, Cardano (ADA) has joined the broader market rally supported by bullish on-chain metrics that indicate ADA price momentum ahead. Over the past 24 hours, the ADA price has rallied more than 6% and is currently trading at $0.3501 with a market cap of $12.58 billion. 

Cardano Shows Bullish On-chain Metrics

According to Coinglass stats, ADA’s Long/Short Ratio stood at 1.0152 at the time of writing. This ratio indicates that traders are leaning towards a bullish market sentiment. Typically, a Long/Short Ratio above 1 suggests that traders are building more long positions than short ones. Moreover, long accumulations are often viewed as a sign of potential price increases. Earlier this week, the Cardano blockchain also hit the milestone of 96 million transactions, per the CNF report. 

In addition to this, ADA’s Futures Open Interest rose by 6.09% to $199.89 million in the last 24 hours. This increase has been steady since early September 2024. Rising Open Interest, coupled with a Long/Short Ratio above 1, indicates that traders are likely positioning for a potential price increase. Furthermore, per the CNF report, the surge in active addresses is also bullish for the altcoin. 

However, the rise in Open Interest could also signal that some investors are hedging their positions in anticipation of market volatility. At present, 51.2% of top traders are holding long positions. Meanwhile, 48.8% of traders have raked in short positions. This slight majority suggests that traders remain cautiously optimistic about ADA price.

Adding to the bullish sentiment, ADA’s OI-Weighted Funding Rate is positive. This metric also signals growing confidence among traders. For context, positive funding rates suggest that more traders are willing to pay a premium for long positions, expecting a price rise.

What’s Next For ADA Price?

Whale activity has also been a focal point in ADA’s recent movements. On September 17, 2024, ADA whales moved approximately 19.5 billion ADA tokens, valued at $6.48 billion. According to IntoTheBlock, large transactions worth over $100,000 increased by 10% on the same day. Furthermore, this surge in whale activity hints at a possible upside rally soon.

Amid these bullish on-chain metrics, ADA’s technical indicators show a mixed picture. ADA is currently trading well above the key support level of $0.315, suggesting an uptrend in the short term.

However, the 200 Exponential Moving Average (EMA) suggests otherwise. ADA price has remained below the 200 EMA of 0.415 since April 2024, indicating a strong bearish pressure. Nonetheless, historical price data offers some hope.

If ADA can close its weekly candle above the $0.35 level, it could potentially rise by 20% to reach $0.42. Despite the lack of bullish price patterns on the daily charts, traders are watching this level closely for signs of a reversal. As of this writing, Cardano’s price has been up by 6.12% to $0.3508.