Cardano (ADA) Surges by 26% : Is This Rally Sustainable or a Potential Pitfall ?

Record Liquidity Inflow for ADA

The last 24 hours have been marked by a significant influx of liquidity in both derivative and spot markets for Cardano. Open Interest has climbed by more than 3% to reach $1.21 billion, representing an addition of $48 million. This is the third time this year that OI has exceeded this symbolic threshold, following similar peaks in March and January.

On the spot market side, Spot Exchange Netflow data indicates that more than $14 million worth of ADA has been purchased over the past week, supporting the current bullish trend.

Mixed Signals on the Blockchain

On-chain metrics corroborate this positive momentum, with a slight increase in Total Value Locked (TVL) in Cardano-based protocols. TVL now reaches $333 million, reflecting increased confidence in the network and favorable long-term prospects.

Nevertheless, these indicators remain modest and are not sufficient on their own to conclude a clearly bullish trend.

A Bull Trap in Formation ?

Technical analysis raises questions about the strength of this rebound. Liquidation zones suggest that a bull trap could be forming soon.

The 24-hour liquidation heatmap reveals limited liquidity above ADA’s current price, with clusters only reaching $0.78. Conversely, a significant concentration of unfilled orders sits below, down to $0.68.

The analysis primarily reveals a bullish trendline that would likely be liquidated below $0.74 in the coming days to the downside. Meanwhile, to the upside, strong resistance at $0.844 could halt its ascent.

Indeed, this resistance is a bearish trendline on higher timeframes. A breakout above it would push ADA toward $1.2.

With ADA currently at $0.75, it’s likely to reach the $0.78-0.84 cluster before experiencing a pullback to fill lower orders. This dynamic could generate a classic bull trap and liquidate long positions.

In summary, recent data on Cardano presents an ambivalent picture. Although liquidity inflows and on-chain indicators are rather favorable, technical signals suggest the possibility of a short-term bull trap only.

How to Buy ADA on Bitmart ?

A return below ADA’s trendline would present an interesting buying opportunity given the bullish trend forming on TOTAL3. A bounce from $0.73 to $1.2 offers a potential return of more than 60%. Here’s a guide to easily obtain the token on Bitmart :

1. Create a Bitmart account : Sign up on the official Bitmart website using your email address or phone number. Validate your registration via the link or code sent and complete identity verification (KYC) to access all features.
2. Deposit funds : Log in, access the “Assets” or “Deposit” section, and select a currency such as USDT, BTC, or fiat (if available). Transfer funds from an external wallet or buy directly using a bank card or wire transfer.
3. Buy the token : Go to the “Spot Trading” section, select the ADA/USDT or ADA/BTC pair, and place a buy order (market order for quick execution or limit order for a specific price). Confirm the transaction.

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