ADA Price Update: March Recap

The first week of March closed with excitement surrounding ADA’s price movements. Analyzing its price action reveals ADA has been trading within a bullish megaphone pattern, potentially indicating future performance.

At the time of observation, ADA was priced at $0.864, reflecting a 26% decline from its recent weekly high. This high coincided with Trump’s announcement that ADA would be included in the U.S. crypto reserve.


Significantly, the retracement happened as ADA re-tested the descending resistance of its megaphone pattern. As the pattern extends, investors are hoping for a breakout.

One analyst anticipates that a breakout could lead to a major uptrend, predicting that ADA might soar to $2. The last major bullish breakout for ADA saw it reach $1.32, with its price above $2 last seen in November 2021.

ADA Funding Rates Shift

The activity in Cardano’s derivatives market may hint at future movements. In the last 24 hours, perpetual volumes increased by 18.29%, while options volume saw a dramatic decline of 92.94%. This suggests uncertainty at the current levels, leading to the drop in options volume. Conversely, negative funding rates surged to their highest since February 3.


The rise in funding rates indicates a significant increase in short positions within the derivatives market, coinciding with a 9% price dip in the last day. If the price turns bullish, potential liquidations would be substantial, with around $12.96 million in long positions liquidated versus $3.36 million in short liquidations.

Possible Bullish Pivot for ADA?

Despite heavy liquidations and a bearish result, this may indicate a trap for short sellers. The last significant downturn in the negative funding rates was followed by a notable bullish recovery. Whales and institutions might view this as an opportunity for leverage liquidation.

Recently, $39.87 million in outflows were recorded for ADA, and traders should be alert for potential large shifts that may signify a massive spike in spot inflows.

If robust bullish demand emerges, ADA could potentially gain the momentum needed for a breakout from the megaphone pattern, signaling a new bullish wave for Cardano. The absence of a retest of the descending support at the end of February could suggest that the pattern might be nearing its conclusion.