Cardano requires this to continue its surge to $3 and beyond.

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Cardano is on a roll in terms of “successful rallies,” and the altcoin has made significant gains. Last month, the coin achieved fresh all-time highs, and it recently crossed the $3 mark. All eyes are now on the coin, which has risen to become the third largest cryptocurrency. So, with all of this excitement, will ADA be able to maintain this upward trend?

Cardano hype continues

The world will see the Cardano Summit 2021 on September 25-26 in just a few days. Cardano has been riding high because to the buzz, but this hasn’t benefited the price all that much.

Over the last two weeks, the price of ADA has stayed stable, declining by only 1.65%. This contradicts the single-day changes. Even though the $3 threshold was reached two days ago, there is still pessimism about when it will be reached again.

So even if ADA does breach $3 again, some consolidation between $3.2 and $2.45 is expected. Now, it is important to consider how investors reacted to its $3 breach.

See also  XRP, Dogecoin, Cardano Price Movement Analysis for 6th May, 2021

Investors remain confused

In the days following fluctuations in the $3 zone, the market also witnessed some bearish behavior from retail investors. Long liquidations were already stronger than short liquidations throughout the month. And now it looked like they were dominating the market.

Cardano Open Interest | Source: Coinalyze

Moreover, there is also a chance that whales could be moving their holdings. This can be inferred from the large transactions (worth more than $100k) occurring in the market. More than $136.83 billion worth of ADA moved around, in the last 3 days.

Cardano large transaction volumes | Source: Intotheblock

The good news is that any bearish sentiment can be pushed aside considering the high funding rate. Adding to it, is the Open Interest which is at an all-time high.

Cardano Open Interest | Source: Coinalyze

More movement is needed in the spot market still, because volumes won’t sustain this rally for long.

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