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 rally and show strong signs of bullish momentum. Over the past 24 hours, ADA has surged by 6%, making it the top performer among the top 20 cryptocurrencies by market capitalization. This impressive growth has positioned Cardano to potentially reach the $0.2772 resistance level if the upward trend persists.
The recent gains for Cardano are building on a modest recovery last week, with the coin trading above $0.25 as of Monday. This recovery is supported by a combination of stronger on-chain signals and improving derivatives data, which suggests that the uptrend could continue. Additionally, technical indicators are pointing to growing momentum, further reinforcing the case for a near-term rally.
On-chain and derivatives data are both leaning bullish for Cardano. Santiment's Social Dominance metric, which tracks the proportion of ADA-related discussions across the broader crypto landscape, has edged higher to 0.206% on Monday. This increase in market attention and improved sentiment among investors is a positive sign for Cardano's future performance.
Looking at 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 rates, followed by rising rates, have coincided with upward price movements for ADA.
From a technical perspective, the ADA/USD 4-hour chart is bearish and efficient as Cardano trades 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 Exponential Moving Average (EMA) at $0.27. A breakout of this resistance level could suggest an upward move.
Currently, the momentum indicators have switched to a bullish outlook. 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, further supporting the bullish trend.
In conclusion, the recent surge in Cardano's price, combined with strong on-chain and derivatives data, technical indicators, and improved social sentiment, points to a bullish outlook for the cryptocurrency. If the rally continues, Cardano has the potential to extend its gains towards the $0.2772 resistance level. Investors and traders are closely watching these developments, as they could signal a significant shift in the market's sentiment towards Cardano and potentially lead to further appreciation.
