Key Takeaways
- ADA is up 6% in the last 24 hours, making it the best performer among the top 20 cryptocurrencies by market cap.
- The coin could rally toward the $0.2772 resistance level if the current uptrend persists.
Cardano Builds Momentum Above $0.25
Cardano (ADA) continues to build on recent gains, trading above $0.25 as of Monday following a modest recovery last week. Stronger on-chain signals combined with improving derivatives data point to potential continuation of the uptrend. Technical indicators further reinforce growing momentum, supporting the case for a near-term rally without overstating the risks involved.
On-Chain and Derivatives Data Lean Bullish
Santiment's Social Dominance metric provides a constructive outlook, tracking the share of ADA-related discussions in the broader crypto space. It has edged higher to 0.206% on Monday, which signals increased market attention and improving investor sentiment.
Derivatives data from CoinGlass reveals Cardano's long-to-short ratio at 1.01, a level above 1 that indicates more traders are positioning for upside moves and reflects a clear bullish bias in the market.
Cardano's funding rates shifted positive on Thursday and have kept climbing, reaching 0.0076% on Monday. Positive rates mean long-position holders are paying shorts, a straightforward sign of robust demand. In the past, such transitions from negative to positive funding followed by rising rates have aligned with upward price action for ADA.
Cardano Price Forecast: Eyes on $0.2772 Extension
The ADA/USD 4-hour chart maintains a bearish structure overall, yet Cardano trades above $0.25 on Monday with a mildly bullish near-term bias as recovery extends toward the key 50-day EMA resistance at $0.27. A decisive breakout here would confirm upward potential.
Momentum indicators have flipped bullish: the Relative Strength Index (RSI) on the 4-hour chart sits at 67, leaning into impulsive buying pressure without entering overbought territory.
The Moving Average Convergence Divergence (MACD) has crossed back above its signal line just below the zero mark, suggesting fading downside pressure and room for further gains.
Should a correction materialize, ADA would likely retest major support at $0.24 first. A breach there opens the $0.22 swing low where buyers have stepped in before.
If the rally holds firm, however, ADA could push toward $0.2772 resistance aligning with the 50-day EMA. A daily close above this might propel it to the next hurdle at $0.2991.
