Cardano (ADA) has been forming a technical pattern known as a “descending wedge” since early September, which is often considered a bullish reversal signal. At the time of this report, ADA is trading at $0.83, and analysts predict a potential price target of $0.94 if resistance levels are broken.
Binance data shows that 74.65% of traders hold long positions on Cardano, while only 25.35% are short. This roughly 3:1 ratio reflects strong market confidence in the likelihood of a price increase.
Sustained market sentiment suggests that traders expect the descending wedge pattern to break and initiate an upward move. If the price surpasses resistance, leveraged traders could amplify buying pressure, further accelerating the bullish momentum.
Continuous Outflow from Exchanges
On September 6, about $840,000 net outflow of ADA from exchanges was recorded. This ongoing withdrawal indicates that available supply on centralized platforms is decreasing, and investors prefer to store their tokens in personal wallets. Such a trend is typically a sign of long-term accumulation, showing that holders are reluctant to sell their assets.
Growth in Cardano DeFi Ecosystem
The Cardano DeFi ecosystem is showing signs of resilience and growth. The Total Value Locked (TVL) on the network reached $487.18 million, reflecting a 2.15% increase in the last 24 hours. This growth indicates higher user participation in Cardano’s decentralized protocols, which generally strengthens network utility and long-term fundamentals.
Rising Volume on Decentralized Exchanges
Activity on Decentralized Exchanges (DEXs) has also accelerated, confirming the strengthening of Cardano’s fundamentals. Daily DEX trading volume reached $4.68 million, while weekly volume increased to $25.56 million, marking a 19.18% rise compared to the previous week. This trend indicates growing demand and liquidity on Cardano platforms, with increased network participation often preceding stronger market rallies.
Summary: Bullish Conditions Ahead
The combination of Cardano’s descending wedge pattern and strong buyer positioning on Binance creates an attractive technical setup for a potential upward breakout. Continuous outflows from exchanges suggest that investors prefer holding ADA rather than selling, effectively reducing supply. This trend is reinforced by a rising TVL and increased DEX activity, both signaling higher on-chain activity and growing user confidence.
For those looking to trade Cardano, you can register and trade on Balinex, a trusted cryptocurrency exchange.
CHECK LIVE HERE: Tradingview
also read: Bitcoin Holds Steady Above $112K Despite Slowing Demand
