Cardano, Bitcoin & Crypto – European Wrap 17 February

Cardano (ADA) price extends its rally on Monday after gaining more than 13% last week. On-chain metrics suggest a bullish picture as ADA’s long-to-short ratio reached the highest level in over a month. The technical outlook and funding rates data suggest a rally continuation, targeting 20% additional gains.

Bitcoin (BTC) price has been consolidating between $94,000 and $100,000 for almost two weeks. Amid this consolidation, investor sentiment remains indecisive, with US spot Exchange Traded Funds (ETFs) recording a $580.2 million net outflow last week, signaling institutional demand weakness. At the same time, CryptoQuant data suggests continued accumulation through the 30DMA exchange inflow/outflow ratio.

The crypto market has been sluggishly declining since the end of last week, pulling back 0.8% in the last 24 hours to $3.19 trillion. This is marginally higher than levels a week earlier, but we see the market stabilising at a lower level compared to January. The $3.3 trillion capitalisation level is acting as resistance where sellers are taking the initiative.