Cardano Price Forecast: Strengthening momentum points to cautious upside extension

• Cardano trades at $0.222 on Monday after surging over 15% in the previous week.
• Mixed derivatives metrics and mildly bullish on-chain data suggest a cautious market sentiment.
• The technical outlook suggests further gains as momentum indicators show signs of strengthening.

Cardano (ADA) trades around $0.222 on Monday after rallying over 15% last week. Mixed derivatives data and mildly bullish on-chain metrics point to cautious market sentiment. Meanwhile, strengthening momentum indicators suggest ADA could see further gains if the recovery continues.

Mixed signals in the derivatives market

Cardano derivatives metrics show a mixed sentiment. CoinGlass’ long-to-short ratio for ADA reads 0.94 on Monday. This ratio above one reflects bearish sentiment, as more traders are betting on Cardano to fall.

However, funding rates point to a strengthening outlook. CoinGlass’ OI-weighted funding rate data for Cardano flipped positive on Saturday and read 0.0097% on Monday. This positive rate indicates longs are paying shorts and signals a bullish sentiment.

On-chain data shows mild bullish bias

CryptoQuant’s summary data shows mild optimism. ADA’s futures markets show large whale orders, while other metrics remain neutral, highlighting a mild bullish bias among traders.

Cardano Price Forecast: Momentum indicators show strengthening signs

Cardano price trades at $0.222 on Monday, holding a constructive bullish bias as it extends above the 50-day and 100-day Exponential Moving Averages (EMAs) clustered around $0.200. 

This recovery leg is unfolding with the Relative Strength Index (RSI) hovering near 61, suggesting firm positive momentum. At the same time, the Moving Average Convergence Divergence (MACD) line has turned marginally positive, hinting at a gradual shift in favor of buyers even as the broader downtrend line still looms overhead as dynamic resistance.

On the downside, initial support appears at the 50% retracement near $0.213, with the 100-day EMA around $0.200 and the 50-day EMA just below, reinforced by the 38.2% Fibonacci retracement close to $0.195, forming a broader demand band before deeper support at $0.173 and $0.150.

On the topside, immediate resistance aligns with the 61.8% Fibonacci retracement at about $0.231, followed by a horizontal cap near $0.236 and the 200-day EMA around $0.243, ahead of a stronger barrier at $0.245; a sustained break above this confluence and the descending trendline resistance beyond it would strengthen the case for a more extended corrective advance.

(The technical analysis of this story was written with the help of an AI tool. Know more.)