With increasing interest in the crypto market, the island price is also moving. In recent days, the upward acceleration has turned the attention of investors to Cardano again. However, the resistance of $ 0.80 stands strongly. So, is this rise in a bull trap or a real breakdown on the road?
The island stared at its resistance of $ 0.80
Cardano is traded at $ 0.75 and faces a significant resistance. The compression structure in daily graphs reminds us of the price behavior in the middle of February. Similar structure of that period, the island to climb up to $ 1.14.
This similarity triggers the expectation of a new rise in the eyes of investors. Moreover, on March 25, the island reached a transaction volume of $ 1.06 billion and gave a critical liquidity signal. This process shows that the upward price movement is supported.
Bingx listing and BTC rotation adds strength to the island
The listing of Cardano on the Bingx stock exchange increases the access to the project. This platform, which has 10 million users, directly contributes to the liquidity of the island. This makes it possible to process the demand for the price more easily.
On the other hand, a capital rotation from Bitcoin to the island is observed. While the island/BTC parity makes a upward break, this movement is interpreted as a positive signal for the Altcoin market.
Island: Excessive leverage and FOMO Effect can trigger bull traps
Open Interest in Cardano futures transactions increased by 4.24 %to $ 834 million. At the same time, the positive funding rates shows that the market turns to long (upward) positions.
Although this may seem positive at first glance, extreme leveraged positions can trigger a potential correction. The levels of bull traps are usually caused by such “Fomo” effective rally.
The current market structure requires the island to permanently overcome the $ 0.80–0.85 band. If this region remains a resistance, investors who make over -purchase can face sales pressure.
If this scenario occurs, it is inevitable that the price will be withdrawn to $ 0.65 demand zone. In other words, the level of $ 0.80 for investors is not only a threshold, but also a decision point. In addition, the accumulation of 240 million islands in the last 7 days of whales reveals institutional interest. However, this interest may not turn into a permanent rise unless there is a strong resistance break.
