Cardano (ADA) has recently broken out of a triangle pattern, surpassing the $0.65 resistance level and reaching $0.696. This breakout is significant as it aligns with the 1.618 Fibonacci extension level at $0.684, now acting as support. The next key resistance for ADA is at $0.711, with a potential target of $0.77 if bullish momentum continues.
Retail traders seem to be leading the current rally in ADA, with smaller transactions below $1 increasing by 250%. On the contrary, large transactions exceeding $100k have decreased significantly, indicating a lack of institutional participation. This shift suggests that retail investors are driving the price rise, while whales and high-net-worth individuals remain cautious.
Spot market positioning for ADA shows balanced activity, with inflows and outflows almost matching each other. This slight net withdrawal is common during breakout stages, reflecting a cautious approach by traders. Positive funding rates in derivatives also support a bullish bias for ADA, with traders paying to hold long positions indicating strong conviction post the breakout.
Looking ahead, Cardano’s structure appears bullish post-consolidation, with increasing retail engagement, strong derivatives sentiment, and balanced spot market activity. If ADA maintains its current trajectory and sustains momentum above $0.684, the $0.77 target could be achievable in the short term. Whales’ continued inactivity could shift market psychology and propel ADA towards further gains.
