Cardano's price has increased by 10% in the last 24 hours as the overall cryptocurrency market has been performing well, resulting in Cardano reaching a level not seen in two months. This surge has encouraged positive sentiments among traders in both spot and derivatives markets.

Recent data from Santiment shows that Cardano's significant price increase has resulted in a higher percentage of its circulating supply being held at a profit, reaching around 74.14%. When a coin's profit supply rises, it indicates that a substantial portion of its circulating supply is now valued more than its acquisition cost, potentially leading to renewed accumulation and a positive market sentiment.

In the derivatives market, Cardano's funding rate remains positive at 0.0099%, suggesting that traders are increasingly opting for long positions in anticipation of further price growth. The funding rate represents a recurring payment between traders in perpetual futures contracts to maintain synchronization with the spot market price. A positive funding rate typically implies a bullish sentiment and expectations of price appreciation.

Although technical indicators indicate a bullish trend and market sentiment is positive, there is a possibility of profit-taking in the near future that could threaten the support level at $0.76. If the buying pressure continues and the bulls remain dominant, Cardano may sustain its upward momentum and target $0.84. Conversely, if buyers start to take profits and selling pressure increases, Cardano may drop below $0.76 support towards $0.66.