Key Insights:
- Cardano sentiment hits five-month low, yet whales accumulate, driving ADA up 5% despite bearish retailers.
- Wyckoff cycle analysis places ADA in the markup phase, signaling possible parabolic rally if resistance levels hold.
- Coinglass data shows $106K short liquidations as futures open interest grows and options activity declines.
Cardano sentiment has fallen to its lowest point in five months. Even with retail traders turning cautious, ADA has climbed 5% in recent sessions as large holders continue to buy.
Data shows that in late August, a 12.8:1 bullish-to-bearish ratio led to a short pullback when optimism ran high. Recent readings closer to 1.5:1, showing more fear than greed, have coincided with price gains. “Most bearish crowd sentiment in five months has already led to +5% gains,” one source noted.
Wyckoff Cycle Signals Markup Phase
Price action mapped against the Wyckoff cycle suggests ADA may have entered the markup phase, often called the parabolic stage. This stage follows accumulation and breakout periods and is known for strong upward moves as demand outweighs supply.
A current chart marks ADA at the start of this phase. Past cycles show this stage often brings sharp rallies and increased activity. “Cardano may have just entered its parabolic phase,” one analyst said, while adding that strength at resistance levels will decide if momentum holds.
Shorts Face More Liquidations
Coinglass data shows short positions have been under more pressure than longs. Around $106.68K in shorts were liquidated compared with $52.22K in longs, reflecting losses for traders betting against ADA as price moved higher.
At the same time, trading activity has shifted. Overall volume is down 4% to $2.08B, while options volume dropped 93% to $6.59K. Futures open interest rose slightly to $1.58B, while options open interest edged down to $374.92K. This points to steady futures positioning but less activity in options.
Current Price Levels
At the latest update, Cardano was priced at $0.83 with 24-hour trading volume of $1.06 billion. The token is up 1% on the last day but down 3% over the past week.
With sentiment at a multi-month low but whales still accumulating, traders are watching if ADA can build momentum and aim for higher levels.
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Source: https://coincu.com/analysis/cardano-breakout-ada-may-have-just-gone-parabolic/