Cardano eyes $0.2772 when sentiment is high
Key receivers
ADA is up 6% in the last 24 hours, making it the best performer among the top 20 cryptocurrencies by market capitalization.
If the rally continues, the coin may rally towards the $0.2772 resistance level.
Cardano (ADA) is building on recent gains, trading above $0.25 since Monday after posting a modest recovery last week. A combination of strong signals across the chain and improved derivatives data suggest growth is likely to continue. Technical indicators also point to momentum strengthening the case for a rising rally.
On-chain and derivative data for Cardano lean bullying
Data from Sentiment's Social Dominance measure support the constructivist view. This indicator tracks the share of ADA-related conversations with the broader crypto landscape. On Monday, it rose to 0.206%, which is the increase of market attention and the improvement of sentiment among investors.
On the derivatives front, CoinGlass shows Cardano's long-to-short ratio at 1.01. A reading above 1 indicates that many traders are sitting higher, reflecting bias in the market.
Meanwhile, Cardano's funding rate turned positive on Thursday and continued to rise, reaching 0.0076 on Monday. Positive funding rates suggest long holders are paying short, a sign of strong demand. Historically, similar changes from negative to positive subsidies, followed by price increases, have been associated with higher price movements for ADA.
Cardano price prediction: ADA may extend gains to $0.2772.
The 4-hour chart of ADA/USD is weak and bearish as Cardano traded above $0.25 on Monday. The recent bias is somewhat bullish as the price extends the recovery, approaching key resistance at the 50-day EMA at $0.27. A breakout suggests an upward move.
Nowadays the speed indicators have changed the flashes. The Relative Strength Index (RSI) on the 4-hour chart at 67 is highlighted, indicating buying pressure.
The moving average converging divergence (MACD) indicator has retraced above the signal line at the zero mark, hinting at a bearish downside trend.
If the market corrects, ADA may retest the first major support at $0.24. A break of this support level would expose the $0.22 swing low where buyers had previously emerged.
However, if the rally continues, ADA may rise to resistance at $0.2772, coinciding with the 50-day EMA. A daily break above this level could push ADA to the $0.2991 resistance level.
