Cardano – Here’s why ADA’s 23% rally could call for caution!

Key Points

1. Cardano's 24-hour gain of 3.52% and 7-day return of over 23% have pushed it into high-profit territory, but this may signal an upcoming market correction.

2. Net Unrealized Profit and Loss (NUPL) for ADA is significantly above zero, indicating most holders are in profit, which could lead to profit-taking and a downtrend.

3. Analyst Joao Wedson predicts a short-term cooling period for ADA before a potential rally past $3 by October or November, with a selling target of $4.90.

4. ADA's Total Value Locked (TVL) in DeFi surged by 3.44% to $313.75 million, suggesting long-term investor conviction, but spot market data shows $280,000 worth of ADA exiting exchanges.

5. Liquidation data shows nearly equal volumes for long and short positions, with buyer volume at 76.22% and seller volume at 23.78%, indicating a potential advantage for bulls but vulnerability to selling pressure.