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
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\u2019s 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
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 Open interest rose ~25% over the same two days, to $304M, its highest daily close since at least early April.
\n Measured in coins rather than dollars, open interest still rose ~13%, so this is new positioning, not just a higher price.
\n 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
Explore ADA open interest in Sanbase: https:\/\/t.co\/LOdcbV2HOB<\/p>\n
\u2014 Santiment Intelligence (@SantimentData) October 6, 2026<\/a><\/p>\n\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>","protected":false},"excerpt":{"rendered":" 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. 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 […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-236232","post","type-post","status-publish","format-standard","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/236232"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=236232"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/236232\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=236232"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=236232"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=236232"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Even Bigger Move Ahead?<\/h2>\n