Despite Cardano (ADA) price remaining relatively stable, our data indicates several factors that may contribute to potential growth in the future.
Signals of Accumulation and Short Selling
ADA's price has hovered around $0.587 throughout July, which may indicate asset accumulation. Funding rates remain negative, indicating that short sellers are still paying interest to bet against the price. If market sentiment flips and ADA begins to rise, it could trigger a short squeeze.
Exchange Outflow Data
Netflow data shows that more ADA is being withdrawn from exchanges than deposited. This typically indicates that holders are moving tokens to long-term wallets, suggesting accumulation ahead of potential price increases. Decreasing exchange supply can limit sell-side pressure.
Increasing ADA Holders and Trading Volumes
The number of unique addresses holding ADA has risen to 4.5 million, marking a new yearly high. In the past year, Cardano has registered over $381 billion in trading volume, reflecting sustained interest from traders and institutional investors, which could catalyze price movements.
Overall, market data indicates possible hidden accumulation and increased interest from users, creating positive conditions for potential price growth for Cardano in the future.
