Cardano (ADA) Rebounds 10%, Here’s a Positive Sign for Its Price per Santiment

Per CoinMarketCap data, Cardano (ADA) is up nearly 10% in the last 24 hours at a present price of $0.928. The cryptocurrency market is posting a rebound in the last 24 hours as the total market valuation increases by 5.47% to sit at $1.76 trillion at press time. Aside from Terra (LUNA), which is up 13.79%, Cardano is outperforming the top 10 largest cryptocurrencies in 24-hour gains.

Courtesy: CoinMarketCap Data

Cardano saw favorable price action in the prior year as ADA rose to all-time highs of $3.10 in early September. However, the seventh largest cryptocurrency has steadily declined since then and has shed nearly 70% of its ATH at present prices.

Here is a positive sign for its price per Santiment

On-chain analytics firm Santiment notes in its latest report that the ADA funding rate on Binance is currently negative, indicating a large number of shorts.

According to on-chain data analytics, the latest dip in the funding rate corresponded to the highest ratio of shorts recorded on Binance when ADA rose to all-time highs of $3.10.

Cardano (ADA) Funding Rates, Courtesy: CoinGlass

Although negative funding rates are a sign that the crowd expects prices to fall, Santiment believes they may have a positive undertone. This is because, in most cases, short liquidations or a “short squeeze” can cause prices to rise. As a result, negative funding rates could be a positive sign in the near term.

While a near-term price turnaround might be a possibility, Santiment points out that the number of large transactions, or transactions worth more than $100,000, can help predict long-term price changes. Cardano witnessed a massive surge in large transactions in May 2021 and September 2021, when it reached all-time highs.

As U.Today reported, Cardano ”shark” addresses holding 10,000 to 100,000 ADA tokens have accumulated almost half of Cardano’s total supply of 33.5 billion ADA, adding 6% more in the last five weeks.