TLDR
- Cardano is trading at $0.7709, down 5.70% in 24 hours, after breaking out of a falling wedge pattern
- Exchange data shows $9.18 million in net outflows, suggesting possible accumulation and reduced selling pressure
- Retail traders show extreme bullish bias with 89.56% of Binance accounts holding long positions
- ADA has gained prominence in Grayscale’s top crypto assets list, now ranking 4th with an 8.6% weekly gain
- Technical analysis points to a potential 15% rally targeting the $1.20 price zone
Cardano (ADA) is currently trading just above a key support level after breaking out of a multi-month falling wedge pattern on the 3-day chart. At the time of writing, ADA trades at $0.7709, having decreased by 5.70% over the past 24 hours.
Bulls now face pressure to regain momentum. If the current support level fails to hold, there could be increased downside risks. However, a sustained defense at this level could reopen the path toward $0.84 and higher targets.
Exchange data reveals $9.18 million in net outflows as of May 15th. This suggests traders are moving assets off trading platforms, which typically indicates accumulation and reduced selling pressure.
ADA Price
This trend supports a potentially bullish outlook if it continues while the price stabilizes above support levels. However, if these outflows stall and selling resumes, the case for further upside weakens.
Retail trader sentiment shows a heavy bias toward the upside. Binance data indicates that 89.56% of accounts are long on ADA, with only 10.44% holding short positions.
This extreme imbalance demonstrates strong optimism but also increases downside risk. If the price dips below $0.75, cascading long liquidations could follow, potentially intensifying any decline.
Institutional Recognition Growing
Cardano is making quiet but steady progress in market rankings. According to the latest data from TapTools, ADA now holds 0.94% of CoinMarketCap’s Top 100 Index constituents fund, approaching the 1% threshold.
This inclusion often signals stronger confidence from data-driven investors and index allocators. Sitting at 7th spot in the rankings, Cardano’s position just below Dogecoin and Solana indicates growing institutional interest.
Cardano has shown strong performance in Grayscale’s top crypto assets. Recent data shared by analysts shows ADA ranked 4th in weekly performance across Grayscale’s top 10 crypto assets, posting an 8.6% gain. This puts it ahead of major cryptocurrencies like Bitcoin and Chainlink.
Japanese traders are showing increased interest in Cardano. Binance’s ADA/JPY trading pair has recorded over $295 million in volume, making it one of the top-performing pairs across exchanges.
This volume spike suggests more than casual interest from Japanese traders. Whether due to local narratives, ecosystem development, or favorable regulation, Japanese investors appear to be actively positioning themselves in ADA.
Funding rates tell a somewhat different story from the bullish positioning. ADA’s OI-Weighted Funding Rate remained at 0.0054%, a relatively flat rate showing that leveraged traders are not demonstrating strong confidence.
Without stronger leverage inflows, ADA may lack the push needed to break above resistance levels. The spot market appears to be doing the heavy lifting for now.
