With the Cardano blockchain successfully completing its Chang hard fork, attention is now shifting to its native token, ADA, which could be on the verge of a major price surge. A positive growth in a new metric within the Cardano ecosystem suggests that a significant price increase in ADA’s value may be imminent.
New Metrics Hint At ADA Price Surge
Derivatives traders of Cardano are increasingly optimistic about a potential price surge for ADA. According to data from Coinglass, the 4-hour Long/Short ratio for Cardano in the previous week was around 2.91.
The Long-Short ratio is a crucial metric that reflects the buying and selling dynamics in futures contracts. This ratio compares the volume of long buying positions to short selling positions, whilst also providing valuable insights into the overall market sentiment and expectations.
As Cardano’s Long/Short ratio recently surged to an impressive 2.91, it reflects a notable increase in positive market sentiment for he cryptocurrency. Typically, when the Long/Short ratio for a cryptocurrency falls below 1, it signals a bearish sentiment, suggesting that derivatives traders expect the price of the token to fall.
Conversely, a ratio above 1 indicates a bullish outlook, where more traders are betting on a price increase. In the case of Cardano, a ratio of 2.91 shows that 75% of traders believe that the value of the cryptocurrency will potentially rise. On the other hand, only 25% believe it could decline.
As of writing, Cardano’s Long/Short ratio in the past 24 hours is 0.89, while its ratio on some major exchanges like Binance and OKX is above 2.0. The cryptocurrency is currently trading at $0.33, marking a decline of 2.73% in the last 24 hours, according to CoinMarketCap.
Since the beginning of the year, Cardano has been trading sideways, experiencing severe price stagnation, while other altcoins saw significant price gains. With the Chang hard fork finally complete, ADA could see fresh momentum that could propel its price upwards.
Various analysts already see the Chang upgrade bringing major improvements into the Cardano blockchain, anticipating positive sentiment and potential price surges with the new governance system.
Analyst Says “Cardano Bull Market Has Not Started”
On August 27, a crypto analyst known as ‘Sssebi’ on X (formerly Twitter) forecasted a major price surge for Cardano. Sssebi noted that ADA’s bull market has not officially commenced, however once it does, it could offset significant market activity that could lead to substantial gains for ADA.
The analyst predicts that the price of ADA could rise from $1 to $5 within a few months, undergoing a steady but strong price rally. He disclosed that once Cardano’s price breaks out of bearish trends and begins to rise, it could continue to increase at a parabolic rate.
Adding to his ambitious projection, Sssebi also believes that ADA could experience daily price swings of 30% to 40%, potentially occurring for several consecutive days.
Featured image created with Dall.E, chart from Tradingview.com
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