Key takeaways
Cardano trades near $0.222 on Monday after rallying more than 15% last week.
ADA’s long-to-short ratio of 0.94 shows slightly more bearish than bullish positioning.
Positive funding rates and large whale orders provide mildly bullish signals.
The RSI and MACD indicate strengthening upside momentum.
Cardano holds gains following 15% weekly rally
Cardano (ADA) trades around $0.222 on Monday after gaining more than 15% last week.
Mixed derivatives data and mildly positive on-chain indicators reflect cautious sentiment among traders. However, strengthening technical momentum suggests ADA could extend its recovery if buyers overcome a cluster of resistance levels between $0.231 and $0.245.
The token currently trades above its 50-day and 100-day exponential moving averages, reinforcing its improving short-term outlook.
Cardano’s derivatives market presents a divided picture on Monday. CoinGlass data shows ADA’s long-to-short ratio at 0.94. A reading below 1 means short positions outnumber long positions, indicating that slightly more traders are betting on a price decline than an advance.
However, the difference between bullish and bearish positioning remains relatively narrow, suggesting traders are cautious rather than strongly bearish.
Funding rates offer a more encouraging signal. Cardano’s open interest-weighted funding rate turned positive on Saturday and stood at 0.0097% on Monday.
A positive funding rate means traders holding long positions are paying those holding shorts, typically reflecting increased demand for bullish exposure. The shift suggests sentiment has improved following ADA’s double-digit weekly rally.
CryptoQuant’s summary data also points to cautiously optimistic sentiment around Cardano.
Large whale orders have appeared in ADA’s futures market, indicating increased activity among well-capitalized traders. Most other tracked metrics remain neutral, limiting the strength of the bullish signal.
The combination of large orders and neutral broader indicators suggests institutional or whale interest may be increasing, but the market has not yet established overwhelmingly bullish positioning.
Continued buying from large traders could support ADA’s recovery, while a decline in whale activity could leave the token vulnerable to profit-taking.
Cardano momentum indicators strengthen
ADA’s price remains above the 50-day and 100-day EMAs, both clustered around the psychologically important $0.200 level.
The Relative Strength Index stands near 61 on the daily chart. This reading reflects solid bullish momentum while remaining below the overbought threshold of 70, suggesting ADA may have room to rise before the rally becomes overstretched.
The Moving Average Convergence Divergence indicator has also turned marginally positive. This shift signals that buyers are gradually gaining control, although a descending trendline continues to act as dynamic resistance.
Together, the RSI and MACD support a constructive short-term outlook, but ADA must clear several overhead barriers to confirm an extended recovery.
Cardano faces immediate resistance at the 61.8% Fibonacci retracement near $0.231. A move above that level would bring the horizontal resistance at $0.236 into focus.
The 200-day EMA sits around $0.243, just below another key resistance level at $0.245. This concentration of technical barriers could attract profit-taking and slow ADA’s advance.
A sustained break above $0.245 and the descending trendline would strengthen the bullish case and potentially open the door to a more substantial recovery.
Conversely, failure to clear $0.231 could trigger a pullback toward the 50% Fibonacci retracement at $0.213.
Below that level, the 100-day EMA around $0.200 and the 50-day EMA near the 38.2% Fibonacci retracement at $0.195 form a broader support zone. Deeper support levels sit at $0.173 and $0.150.
ADA’s outlook remains cautiously bullish while the price stays above $0.200, but overcoming the $0.231–$0.245 resistance region will be crucial for extending the rally.
