ambcrypto.com
05 October 2026 15:15, UTC
Cardano [$ADA] successfully held $0.24 and climbed to a five-month high of $0.27. At press time, Cardano traded around $0.26, up 10% on the daily charts.
The altcoin’s price jump came alongside a 297% increase in Spot Trading Volume, reflecting higher market activity.
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The rally caught bears on the wrong side. According to CoinGlass data, $2.1 million worth of short positions were liquidated. Even so, bearish positioning persisted as more capital entered the market.
Although shorts faced substantial liquidations, traders deployed more capital into the derivatives market.
The altcoin’s Open Interest surged 18% to $635 million alongside a 355% jump in Derivatives Volume. Together, these increases pointed to more outstanding positions and heavier trading activity.
On top of that, Cardano [$ADA] recorded $337 million in Futures Inflows against $321 million in Futures Outflows.
However, those flows alone did not establish whether traders favored longs or shorts. The Long/Short Ratio offered a clearer directional clue. It plunged to 0.71, showing a bearish skew across tracked exchanges.
The rally had yet to win over those traders. If Cardano continued climbing, that bearish positioning could leave shorts exposed to another squeeze. Meanwhile, Spot flows presented a different challenge.
The latest gains coincided with rising exchange deposits. According to CoinGlass data, Cardano’s Spot Netflow remained positive for two consecutive days.
At press time, Spot Netflow stood around $1.34 million, up from $1 million the previous day.
Positive Netflow indicated that exchange inflows exceeded outflows, leaving more $ADA available for potential selling. That could reflect preparations to take profits, although deposits alone did not confirm that holders had sold.
If those tokens reach the sell side, they could slow the rally. For now, momentum indicators still favored buyers.
Despite potential selling pressure, the altcoin’s True Strength Index (TSI) formed a bullish crossover. TSI rose to 24, suggesting strengthening upside momentum.
Cardano also climbed above its 20-day Exponential Moving Average (EMA), which stood at $0.24.
These two indicators supported the bullish outlook, although continuation would depend on buyers maintaining pressure.
If further gains force shorts to close, $ADA could clear $0.28 and bring $0.30 into view. Holding $0.24, near the 20-day and 200-day EMAs, would help preserve that outlook.
However, sustained Spot selling could weaken support. A break below $0.24 could open the way toward $0.22.
