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Cardano (ADA) Rebounds 10%, Here's a Positive Sign for Its Price per Santiment

Wed, 02/23/2022 - 11:38
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Tomiwabold Olajide
Cardano is outperforming the top 10 largest cryptocurrencies in 24-hour gains
Cardano (ADA) Rebounds 10%, Here's a Positive Sign for Its Price per Santiment
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Per CoinMarketCap data, Cardano (ADA) is up nearly 10% in the last 24 hours at a present price of $0.928. The cryptocurrency market is posting a rebound in the last 24 hours as the total market valuation increases by 5.47% to sit at $1.76 trillion at press time. Aside from Terra (LUNA), which is up 13.79%, Cardano is outperforming the top 10 largest cryptocurrencies in 24-hour gains.

CoinMarketCap Data
Courtesy: CoinMarketCap Data

Cardano saw favorable price action in the prior year as ADA rose to all-time highs of $3.10 in early September. However, the seventh largest cryptocurrency has steadily declined since then and has shed nearly 70% of its ATH at present prices.

Here is a positive sign for its price per Santiment

On-chain analytics firm Santiment notes in its latest report that the ADA funding rate on Binance is currently negative, indicating a large number of shorts.

According to on-chain data analytics, the latest dip in the funding rate corresponded to the highest ratio of shorts recorded on Binance when ADA rose to all-time highs of $3.10.

Cardano (ADA) Funding Rates, Courtesy: CoinGlass

Although negative funding rates are a sign that the crowd expects prices to fall, Santiment believes they may have a positive undertone. This is because, in most cases, short liquidations or a "short squeeze" can cause prices to rise. As a result, negative funding rates could be a positive sign in the near term.

While a near-term price turnaround might be a possibility, Santiment points out that the number of large transactions, or transactions worth more than $100,000, can help predict long-term price changes. Cardano witnessed a massive surge in large transactions in May 2021 and September 2021, when it reached all-time highs.

As U.Today reported, Cardano ''shark'' addresses holding 10,000 to 100,000 ADA tokens have accumulated almost half of Cardano's total supply of 33.5 billion ADA, adding 6% more in the last five weeks.

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.