Cardano (ADA) is trading modestly lower on Monday as the market pauses following last week’s impressive 31% rally.
The cryptocurrency is currently finding support around $0.186, where the 50-day Exponential Moving Average (EMA) is helping stabilize prices after the recent surge.
Although buyers have taken a breather, derivatives data and technical indicators suggest the broader recovery remains intact as long as ADA continues to hold above this critical support zone.
Futures market reflects growing investor interest
Activity in Cardano’s derivatives market points to increasing participation from traders.
According to CoinGlass data, ADA futures Open Interest (OI) climbed to approximately $515 million on Sunday, marking its highest level since the end of May before easing slightly to around $459 million on Monday.
Rising open interest typically indicates that fresh capital is entering the market, reinforcing expectations that traders continue positioning for additional price movement.
Market sentiment has also improved in the perpetual futures market.
CoinGlass data shows Cardano’s open interest-weighted funding rate turned positive last week and climbed to 0.0080% on Monday.
A positive funding rate means traders holding long positions are paying those with short positions, reflecting stronger demand for bullish exposure and growing confidence in ADA’s recent recovery.
Despite the encouraging derivatives data, not every indicator supports the bullish case.
Cardano’s long-to-short ratio stood at 0.68 on Monday, remaining below the neutral level of one and hovering near its lowest reading in more than a month.
This suggests that a larger proportion of traders continue betting on lower prices, highlighting lingering caution even as other market indicators improve.
Cardano price analysis: Momentum remains positive above $0.186
The ADA/USD 4-hour chart remains bullish after Cardano added 26% to its value in the last seven days.
From a technical perspective, Cardano continues to show improving momentum despite Monday’s modest pullback.
ADA has successfully reclaimed its 50-day EMA at $0.186, an important milestone after last week’s rally.
However, the cryptocurrency still trades below its 100-day EMA at $0.218 and 200-day EMA at $0.289, meaning the broader long-term trend has yet to fully shift in favor of the bulls.
Momentum indicators nevertheless continue to strengthen. The Relative Strength Index (RSI) is holding near 61, indicating healthy buying momentum without entering overbought territory.
Meanwhile, the Moving Average Convergence Divergence (MACD) remains in positive territory, supporting the potential for additional upside.
The first major obstacle for buyers lies at the resistance level of $0.195. A successful breakout above that level would bring the next resistance cluster into focus between $0.213 and $0.219.
If bullish momentum continues, ADA could target the next major resistance level at $0.231, followed by supply zones around $0.236 and $0.245.
Beyond those levels, stronger resistance sits near $0.256, the 200-day EMA at $0.289, and the psychological barrier around $0.299.
On the downside, the reclaimed 50-day EMA at $0.186 remains the most important support level.
Holding above this area would preserve the current recovery structure and keep buyers in control.
If ADA falls below that level, the next support is located near the swing low of $0.173, followed by stronger support around $0.150 and $0.138.
Cardano’s sharp rally has paused, but the broader technical picture continues to improve.
Higher futures open interest, positive funding rates, and strengthening momentum indicators all suggest buyers remain active despite lingering bearish positioning in the derivatives market.
As long as ADA holds above $0.186, the recovery remains intact, with a breakout above $0.195 potentially opening the door to a test of the $0.213–$0.219 resistance zone.
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