ADA rose by about 10% from October 3 to October 5, and the number of open contracts also increased by 25% during the same period.

Unclosed contracts reached $304 million, setting a new daily closing high since early April at the very least.

On October 5th, there were 413 whale transactions, which is approximately 2.2 times the average level on recent workdays.

ADA The price has risen from $0.24 to $0.28, breaking above the 200-day EMA range, providing long positions with some much-needed momentum recently.

If this bullish momentum continues, prices could further rise to $0.40. However, derivatives data make this round of market activity even more noteworthy. This doesn't seem like a simple short squeeze.

ADA Prices rise, and the number of open contracts also climbs accordingly.

Data from Santiment indicates that ADA rose by approximately 10% from October 3 to October 5. During the same period, the number of open contracts increased by about 25%, reaching $304 million, which is the highest daily closing level since at least early April.

If calculated in terms of the number of coins rather than dollars, the number of open contracts still increased by about 13%. In other words, traders are not just seeing the value of their existing positions rise; new positions are also entering the market.

Whale activity adds another factor to the rebound

During this round of upward movement, whale activity has also significantly intensified. On October 5th, there were 413 transactions worth at least $100,000 each, which is approximately 2.2 times the average level on working days recorded from September 7th to October 2nd.

Short covering can be helpful, but it cannot explain everything.

Some short covering may have driven the price of ADA to rebound. The funding rate hit its lowest level of the past month on October 2nd, before turning positive thereafter.

However, short covering usually leads to a decrease in open positions, but in this case, the number of open positions has actually increased.

This makes the price trend of ADA more complex: the price has broken through the 200-day EMA, unclosed contracts have strengthened, whale trading is active, and there are signs of some short sellers covering their positions. If this momentum continues, $0.40 will become the next clear upward target, but these data do not guarantee this outcome.