{"id":47761,"date":"2026-10-06T12:18:09","date_gmt":"2026-10-06T12:18:09","guid":{"rendered":"https:\/\/financialrush.com\/?p=47761"},"modified":"2026-10-06T12:18:09","modified_gmt":"2026-10-06T12:18:09","slug":"cardano-ada-just-broke-higher-the-data-says-it-wasnt-just-short-covering","status":"publish","type":"post","link":"https:\/\/financialrush.com\/?p=47761","title":{"rendered":"Cardano (ADA) Just Broke Higher: The Data Says It Wasn\u2019t Just Short Covering"},"content":{"rendered":"

\n<\/p>\n

The native token of the Cardano blockchain has skyrocketed by almost 100% since its multi-year low of under $0.14, marked in late June as the FUD around the protocol spread like wildfire.<\/p>\n

The asset recently hit a multi-month peak of over $0.27, and data from Santiment showed that the move cannot be explained simply by short covering alone.<\/p>\n

New Positions Are Entering<\/h2>\n

The crypto intelligence resource challenged the short-squeeze narrative after finding that ADA open interest actually increased about 25% over the same two-day period to over $300 million, during which the underlying asset jumped by 10% to over $0.27. The token marked its highest daily close since early April at that point.<\/p>\n

This increase was not simply a consequence of the asset’s higher dollar price, as even measured in ADA, the OI climbed by roughly 13%. This suggests that traders were adding new leveraged positions as the move progressed. Santiment also outlined 314 whale transactions worth over $100,000 on October 5, around 2.2 times the weekday average during the previous month.<\/p>\n

Nevertheless, short covering likely played some role, but not as significant as initially believed. Funding rates reached their most negative level of the past month on October 2 before shifting positive. However, Santiment stressed that covering shorts normally reduces open interest rather than increasing it.<\/p>\n

\n

Was $ADA\u2019s rally really a short squeeze?<\/p>\n

Some coverage said so, pointing to falling open interest. Santiment\u2019s daily closes show the opposite.<\/p>\n

$ADA rose ~10% from Oct 3 to Oct 5.
\n\"\ud83d\udcca\" Open interest rose ~25% over the same two days, to $304M, its highest daily close since at least early April.
\n\"\ud83e\udded\" Measured in coins rather than dollars, open interest still rose ~13%, so this is new positioning, not just a higher price.
\n\"\ud83d\udc0b\" Whale transactions ($100K+) hit 413 on Oct 5, about 2.2x the Sep 7 to Oct 2 weekday average.<\/p>\n

Social volume on Oct 5 sat at ~1.1x that same baseline.<\/p>\n

Some short covering likely helped: funding hit its most negative reading of the past month on Oct 2, then flipped positive. But covering shrinks open interest, it doesn\u2019t grow it.<\/p>\n

The headline said squeeze, the open interest says leverage.<\/p>\n

\"\ud83d\udd17\" Explore ADA open interest in Sanbase: https:\/\/t.co\/LOdcbV2HOB<\/p>\n

\u2014 Santiment Intelligence (@SantimentData) October 6, 2026<\/a><\/p>\n<\/blockquote>\n

Even Bigger Move Ahead?<\/h2>\n

Although ADA has outperformed most other larger-cap alts over the past week, Crypto Patel remains bullish on its longer-term picture. In a recent analysis, he noted that the token is roughly 98% above his previous accumulation zone and believes it could enter its next macro expansion phase.<\/p>\n

His targets for the long term are quite optimistic at $0.50, $1.00, $2.00, $3.00, and even $5.00. He placed<\/a> particular attention on the $2.00-$5.00 zone if the broader structure continues to develop.<\/p>\n

The post Cardano (ADA) Just Broke Higher: The Data Says It Wasn\u2019t Just Short Covering<\/a> appeared first on CryptoPotato<\/a>.<\/p>\n\n
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