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 towards the $0.2772 resistance level if the rally persists.
Cardano (ADA) is building on recent gains, trading above $0.25 as of Monday after posting a modest recovery last week. A combination of stronger on-chain signals and improving derivatives data suggests the uptrend could continue. Technical indicators also point to growing momentum, reinforcing the case for a near-term rally.
On-chain and derivatives data lean bullish for Cardano
Data from Santiment’s Social Dominance metric supports a constructive outlook. This indicator tracks the proportion of ADA-related discussions across the broader crypto landscape. It has edged higher to 0.206% on Monday, signaling increased market attention and improving sentiment among investors.
On the derivatives front, CoinGlass shows Cardano’s long-to-short ratio at 1.01. A reading above 1 indicates that more traders are positioning for upside, reflecting a bullish bias in the market.
Meanwhile, Cardano’s funding rates turned positive on Thursday and have continued to climb, reaching 0.0076 on Monday. Positive funding rates suggest that long-position holders are paying shorts, a sign of strong demand. Historically, similar shifts from negative to positive funding, followed by rising rates, have coincided with upward price movements for ADA.
Cardano Price Forecast: ADA could extend gains towards $0.2772
The ADA/USD 4-hour chart is bearish and efficient as Cardano is trading above $0.25 on Monday. The near-term bias is mildly bullish as the price extends its recovery, nearing the key resistance at the 50-day EMA at $0.27. A breakout suggests an upward move.&
Currently, the momentum indicators have switched bullish. The Relative Strength Index (RSI) on the 4-hour chart at 67 leans bullish, signalling an impulsive buying pressure.&
The Moving Average Convergence Divergence (MACD) indicator has turned back above the signal line just under the zero mark, hinting at fading downside pressure.
If the market undergoes a correction, ADA would likely retest the first major support at $0.24. Breaking this support level would expose the $0.22 swing low where buyers previously emerged.&
However, if the rally persists, ADA could surge towards the $0.2772 resistance, coinciding with its 50-day EMA. A daily break above this level could see ADA surge towards the $0.2991 resistance level.&
The post Cardano eyes $0.2772 as bullish sentiment builds appeared first on CoinJournal.
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