Layer-1 (L1) coin Cardano has recorded a 10% gain over the past week, positioning itself for an extended rally. 

The altcoin is now trading close to its 20-day Exponential Moving Average (EMA), a key technical level that, if breached, could validate the ongoing rally and open the door to fresh highs.

ADA Approaches Key Breakout Zone Amid Surge in Buying Pressure

ADA currently trades near its 20-day EMA and is poised to climb above it. This key moving average measures an asset’s average price over the past 20 trading days, giving more weight to recent prices.

When an asset is about to rally above its 20-day EMA, it signals a shift in short-term momentum from bearish to bullish. This crossover signals that ADA buying pressure is increasing and confirms that the asset has entered an upward trend. 

ADA’s successful break above the 20-day EMA would signal renewed momentum and act as a dynamic support level for the coin’s price, giving buyers more control.

On-chain metrics further support the bullish outlook. According to Santiment, ADA’s Network Realized Profit/Loss (NPL) has turned negative, indicating that most holders are currently at a loss. 

Historically, this discourages selling pressure as traders are less willing to part with their assets at a loss. This behavior encourages longer holding periods, which in turn tightens supply and can drive up ADA’s price in the short term.

Cardano Bulls in Control

On the ADA/USD one-day chart, the coin’s positive Chaikin Money Flow (CMF) reinforces this bullish outlook. At press time, this indicator, which measures how money flows into and out of an asset, is at 0.04. 

A positive CMF reading like this indicates that buying pressure outweighs selling pressure. It reflects strong capital inflows into ADA, suggesting that its investors are accumulating rather than offloading their positions. ADA could extend its rally and climb to $0.70 if this trend persists.

However, if profit-taking resumes, ADA could reverse its rally and fall to $0.55.

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After seven straight days of outflows, institutional investors seem to have rekindled their love for Bitcoin ETFs. Since April 2, US-listed spot Bitcoin ETFs have posted net inflows for the first time, drawing $1.47 million in fresh capital on Monday.

While this figure is modest, it marks a notable shift in sentiment and the first sign of renewed institutional appetite for Bitcoin exposure through regulated funds.

Bitcoin ETFs End 7-Day Drought With Modest Inflows

Last week, Bitcoin investment funds recorded $713.30 million in net outflows as the broader cryptocurrency market struggled to stay afloat amid the growing impact of Donald Trump’s escalating trade war rhetoric.

But the tide may be starting to turn.

On Monday, U.S.-listed spot BTC ETFs recorded $1.47 million in net inflows, marking the first capital flow into these funds since April 2. While the amount is modest, it breaks a nearly two-week drought and could signal a gradual shift in institutional sentiment toward BTC.

The largest daily net inflow came from BlackRock’s IBIT, attracting $36.72 million. This brings its total cumulative net inflows to $39.60 billion.

On the other hand, Fidelity’s FBTC recorded the largest net outflow on Monday, shedding $35.25 million in a single day. 

BTC Derivatives Market Heats Up Despite Cautious Options Flow

On the derivatives side, BTC’s futures open interest has edged higher over the past 24 hours, signaling increased derivatives activity. 

At press time, this sits at $56 billion, rising by 2% in the past day. Notably, during the same period, BTC’s period has climbed by 1.22%. 

BTC’s futures open interest refers to the total number of outstanding futures contracts that have yet to be settled. When it rises during a price uptick like this, it suggests that new money is entering the market to support the upward move, potentially reinforcing bullish momentum.

However, there’s a catch. While open interest in BTC futures has increased, the nature of these new positions appears to be bearish. This is evident in the coin’s funding rate, which has now flipped negative for the first time since April 2.

This means that more BTC traders are paying to hold short positions than longs, suggesting that a growing number of market participants are betting on a potential pullback despite the modest inflows into spot ETFs.

Moreover, the mood remains cautious on the options side. Today, there are more put contracts than calls, signaling that some traders may be hedging their bets or anticipating further downside, even as other indicators turn bullish.

Still, for BTC ETFs, any inflow after two weeks of silence feels like a win. With the broader market sentiment toward the coin turning increasingly bullish, it remains to be seen if this trend could persist for the remainder of the week.