Funding rate data shows that last week was not easy for Cardano bears
According to the crypto analytics agency Santiment, Cardano’s ADA token price increase of 25% last week was accompanied by a large-scale liquidation of short positions. This is clearly visible on the chart, which directly shows the price of the token and the funding rate on exchanges. While the funding rate went below the price when it reversed, bears took the most pain when trading ADA.
Judging by the Santiment chart, at the end of the week the ratio of liquidated long positions to liquidated short positions was 1-to-2. However, the number of successfully opened short positions prevails over the number of successfully opened longs.
📈 #Cardano‘s price is back over $0.50, and up +25% the past ten days. Exchange funding rates are a vital metric to keep an eye on, as the extreme spikes in #shorting or #longing of $ADA is typically when traders get liquidated & big price shifts occur. https://t.co/HV3hjdvTaU pic.twitter.com/R80etteVnT
— Santiment (@santimentfeed) July 23, 2022
In any case, ADA managed to finish the week most positively, performing a 25% surge at one point. At the end of the week the token quotation grew by 15%, and its price managed to hold above the level of $0.5. Thanks to this result, Cardano overtook its competitors in the top CoinMarketCap by market capitalization and now ranks sixth there. With a capitalization of $17.7 billion, Cardano is ahead of such crypto projects as Binance USD (BUSD), XRP (XRP), Solana (SOL) and Dogecoin (DOGE).
Will Vasil Hard Fork outweigh Fed impact on markets for ADA?
Whether we should expect Cardano quotes to further go green is an open question and largely depends on the overall state of the crypto market. While the Cardano community is preparing for the long-awaited Vasil network upgrade, the recession and the U.S. Federal Reserve’s decisions are ruling the economy. Of course, the latter weighs heavily on the positivity of Cardano fans, but miracles can happen in the crypto winter as well.