$ADA looking good on the daily chart! Price action suggests that the asset may have bottomed out and is now preparing to retest the upper boundary of the descending channel near $0.80. Analysts remain focused on key levels as buyers return and market sentiment attempts to shift.
Cardano Price Forms Base as Daily Momentum Strengthens
According to analysis prepared by Ssebi, Cardano has reclaimed its $0.62 support level after weeks of volatility. The move suggests a potential recovery from the local bottom near $0.50, with technical indicators showing bullish signals.
The MACD line has crossed above the signal line, while RSI remains neutral, providing room for a possible push toward higher levels.ADA is currently trading around $0.65, showing a 26% gain from last week’s lows.
This movement aligns with previous chart patterns that suggest a potential retest of the upper trendline of the descending channel, located near $0.80. Analysts suggest that a confirmed breakout above this level could open the door for further gains if volume increases accordingly.
On-Chain and Derivatives Metrics Show Mixed Signals
Despite ADA’s price increase, on-chain data from Coinglass reveals that spot inflows remain limited, with less than $1 million added recently. Derivatives volumes have declined by over 23%, and options activity has dropped nearly 93%, indicating a cautious market. However, open interest remains slightly positive, up 2.74%, suggesting moderate confidence among traders.
Funding rates have turned positive, and short liquidations have outpaced long liquidations, reflecting improved positioning among bulls. Meanwhile, the Cardano ecosystem continues to show consistent network activity, with daily DEX volume surpassing $2.5 million. According to a statement from Charles Hoskinson, Cardano’s sidechain project Midnight is expected to boost interoperability and draw new users.
Cardano’s ability to hold above recent support and approach $0.80 could mark a short-term reversal. Traders are watching for further confirmation of trend change as macro conditions and ecosystem growth remain key factors.
