Altcoins News
By Steven Anderson
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Cardano (ADA), one of the most prominent assets in the cryptocurrency market, appears to be replaying a familiar pattern that preceded its explosive rally in 2021.
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Over the past several weeks, ADA has been trading within a consolidation channel, a sideways movement where buyers and sellers are essentially balancing each other out.
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Today, that scenario appears to be unfolding again. ADA has once more pushed past a major resistance area and is now consolidating within the same zone.
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What sets the current setup apart from the 2021 rally is the scale of accumulation taking place behind the scenes.
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This accumulation trend is significant in scale, representing about 1.7% of Cardano's current $22 billion market capitalization.
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For comparison, during a similar consolidation phase between September and November 2020, only $9.57 million in ADA was accumulated.
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Sentiment in the derivatives market supports this bullish outlook as well. The Open Interest Weighted Funding Rate — a key measure of trader sentiment — remains elevated.
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Despite ADA's recent dip, the conviction shown by both spot investors and derivatives traders suggests that the market is positioning itself for a long-term move higher.
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As always, the cryptocurrency market remains unpredictable, and past performance is never a guarantee of future results.
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