Cardano price surges 15%
The price of Cardano rose by 15% after Coinbase announced the staking of the altcoin. According to Coinmarketcap data, the coin has risen in price by 34% over the week. ADA is currently trading at $1.13.
“Cardano is one of the top 10 cryptocurrencies by market cap. This is a blockchain based on the Proof-of-Stake algorithm, developed as the evolution of the next generation of Ethereum,” Coinbase reminded.
ADA holders can participate in staking on their own or through delegation. But Coinbase considers this a complex and confusing process.
Therefore, the company’s team is ready to offer a “simple and safe” option for earning income from Cardano staking with an annual rate of 3.75%. The reward will be credited to the account of platform users every 5–7 days, while investors will be able to withdraw their funds from the exchange at any time.
In 2021, ADA showed positive price dynamics, as the value of the altcoin rose to a record $3.10 in early autumn. However, then the rate of Cardano was constantly declining, as a result, the coin lost almost 70% relative to its historical maximum.
Santiment analysts pointed out that the Cardano funding rate on the Binance crypto exchange is now negative, indicating a large number of shorts. Experts are confident that the latest funding rate cut was in line with the largest ratio of short positions registered on the platform, with ADA rising to $3.10.
It looks like traders are waiting for the rate to fall, but Santiment believes that this could become positive trend. In many cases, the liquidation of short positions or “short squeeze” can trigger a price increase.
As a result, negative rates can become a positive factor in the short term. Despite the likelihood of a short-term price reversal, Santiment analysts believe that the number of large operations or transactions for an amount exceeding $100,000 can help predict long-term changes in the altcoin rate.
Do you agree with the forecast of Santiment analysts?