Cardano eyes $0.2772 as bullish sentiment builds
Key takeaways ADA is up 6% in the last 24 hours, making it the best performer among the top 20 cryptocurrencies by market cap. The coin could rally towards the $0.2772 resistance level if the rally persists. Cardano (ADA) is building on recent gains, trading above $0.25 as of Monday after posting a modest recovery […] The post Cardano eyes $0.2772 as bullish sentiment builds appeared first on CoinJournal .
Cardano eyes $0.2772 as bullish sentiment builds
In recent days, Cardano (ADA) has been making headlines in the cryptocurrency market, as it continues to climb higher, driven by a surge in bullish sentiment. The coin has experienced a 6% increase in the last 24 hours, making it the top performer among the top 20 cryptocurrencies by market capitalization. Analysts are now speculating that Cardano could rally towards the $0.2772 resistance level if the upward trend persists.
Cardano's recent gains are building on a modest recovery last week, with the coin trading above $0.25 as of Monday. This upward momentum is supported by a combination of stronger on-chain signals and improving derivatives data, which suggests that the uptrend could continue. Technical indicators are also pointing to growing momentum, reinforcing the case for a near-term rally.
On-chain and derivatives data are leaning bullish for Cardano. Data from Santiment's Social Dominance metric supports a constructive outlook. This indicator tracks the proportion of ADA-related discussions across the broader crypto landscape. It has edged higher to 0.206% on Monday, signaling increased market attention and improving sentiment among investors.
On the derivatives front, CoinGlass shows Cardano's long-to-short ratio at 1.01. A reading above 1 indicates that more traders are positioning for upside, reflecting a bullish bias in the market. Meanwhile, Cardano's funding rates turned positive on Thursday and have continued to climb, reaching 0.0076 on Monday. Positive funding rates suggest that long-position holders are paying shorts, a sign of strong demand. Historically, similar shifts from negative to positive funding, followed by rising rates, have coincided with upward price movements for ADA.
The ADA/USD 4-hour chart is bearish and efficient as Cardano is trading above $0.25 on Monday. The near-term bias is mildly bullish as the price extends its recovery, nearing the key resistance at the 50-day EMA at $0.27. A breakout suggests an upward move. Currently, the momentum indicators have switched bullish. The Relative Strength Index (RSI) on the 4-hour chart at 67 leans bullish, signaling an impulsive buying pressure. The Moving Average Convergence Divergence (MACD) has also turned positive, indicating a bullish trend.
In conclusion, the recent surge in Cardano's price and the positive indicators from on-chain and derivatives data suggest that the coin could extend its gains towards the $0.2772 resistance level. As long as the bullish momentum continues, Cardano has the potential to reach new heights in the near term. Investors should, however, remain cautious and monitor market developments closely, as the cryptocurrency market is known for its volatility.
