Key Points
- The long-short ratio of ADA has risen to 1.01, slightly leaning towards a bullish position.
- The funding rate has turned positive and risen to 0.0061%, which means that the longs are paying a fee to the shorts.
- ADA still remains above the main daily line EMA. The short-term support level is at $0.245, and the resistance level is at $0.299.
Cardano On Monday, it retested a key support level. ADA Trading was around $0.250. After a 2.85% pullback in the previous week, the derivatives positions improved.
ADA remains above the main daily moving average, which provides constructive support for the short-term trend. However, signs of diverging momentum and selling pressure indicate that this rebound still faces resistance.
Cardano Derivative positions shifting towards a more positive stance
The ADA long-short ratio of CoinGlass rose to 1.004 on Monday, slightly above the neutral threshold of 1.
This reading indicates that in the positions or accounts tracked by this indicator, the number of long positions slightly exceeds that of short positions. This slight advantage suggests that sentiment has only improved slightly, rather than a strong bullish confidence.
The funding rate for Cardano also became official on Sunday and rose to 0.0061% on Monday. A positive funding rate means that long traders pay a fee to short traders, reflecting a higher demand for bullish positions in perpetual contracts.
Overall, these indicators suggest that as ADA attempts to continue its rebound, market sentiment has improved.
However, the aggregated data from CryptoQuant presents a more cautious picture. The platform indicates that there is overheating in the spot and futures markets of Cardano, with sellers holding a dominant position. It also identifies large whale orders in the futures market.
These signals contrast with the continuously improving long-short ratio and positive funding rates, indicating that traders' positions are not consistent.
Merely relying on bullish demand for derivatives does not indicate that the spot buying orders are sufficient to support further price increases.
ADA still remains above the main moving average
Around $0.250, the trading price of Cardano is higher than the 50-day EMA of $0.230, the 100-day EMA of $0.219, and the 200-day EMA of $0.241.
It is located above these three moving averages, supporting a broader repair structure. The level of $0.245 constitutes the most recent support reference.
The momentum is still in a slightly positive neutral state. The Relative Strength Index is close to 54, which is above the neutral midpoint, but it has not yet indicated overbought conditions.
However, the MACD indicator is still slightly below zero, indicating that this round of rebound has not yet formed strong upward momentum.
On the downside, the first level to be tested is $0.245, followed by the 200-day EMA level near $0.241, as well as the support level at $0.236.
If there is a further decline, the 0.230 USD level for the 50-day EMA and the 0.219 USD level for the 100-day EMA will become key points of attention. After falling below these levels, analysis indicates that the support from the upward trend line around 0.206 USD, as well as the lower 0.150 USD level, will come into focus.
On the upside, the next major horizontal resistance level identified in the analysis is at $0.299, and the interest from sellers in the earlier period may limit a more substantial rebound.
If the nearby support level can be held, it will maintain the currently constructive technical position of ADA; however, to continue to advance towards $0.299, stronger buying momentum is needed.
