Here’s what you need to know about Cardano’s recent moves and why traders are buzzing.
1. What’s the “Megaphone Pattern”?
- ADA’s price has been bouncing inside a bullish megaphone pattern (a widening range with higher highs and lower lows).
- Right now, ADA is at $0.864, down 26% from its weekly high. This drop happened after testing the pattern’s upper resistance line.
- Analysts say a breakout from this pattern could send ADA soaring. One prediction even targets $2 — a level last seen in November 2021.
2. Mixed Signals: Bearish Bets vs. Bullish Hopes
- Negative funding rates (fees paid by traders betting against ADA) just hit their highest since February 3.
- This means many traders are shorting ADA (betting on price drops).
- However, heavy shorting can backfire. If ADA suddenly rallies, these traders might panic-buy to cover losses, boosting prices further.
3. Recent Price Drama
- ADA spiked briefly after news about the U.S. crypto reserve, but quickly pulled back.
- In the past 24 hours:
- $12.96 million in long positions (bullish bets) were wiped out.
- Spot outflows (money leaving ADA) hit $39.87 million, signaling caution.
4. What’s Next?
- Watch for spot inflows (new money entering ADA) to fuel a breakout.
- The megaphone pattern might be nearing its end, which could mean a big move soon.
- Remember: A similar funding rate spike in February led to a bullish rebound. History could repeat.
Disclaimer: This is not financial advice. Crypto is risky — never invest more than you can afford to lose. Predictions can change quickly!
Sources: TradingView, Coinglass
