- ADA’s bullish momentum faces resistance near $0.650 amid mixed technical signals.
- Derivatives data shows rising open interest but declining speculative activity.
- RSI nears oversold, suggesting a possible rebound despite weak MACD momentum.
Cardano (ADA) has shown strong bullish momentum, surging 8.70% in the past 24 hours to reach $0.6453. This rise comes after ADA found strong support at $0.5937, a level that previously prevented further downside. The price has consistently formed higher highs and higher lows, indicating an ongoing upward trend.
However, ADA faces potential resistance near its current level, which could determine its next move. While the market cap has increased by 8.72%, the trading volume has dropped by 12.43%, raising questions about the sustainability of the rally.
Key Support and Resistance Levels
ADA’s nearest support level sits at $0.5937, where buyers previously defended the price. If the price stays above $0.620, the bullish trend could continue, with an attempt to break above $0.650.
A successful breakout might push ADA toward new highs. However, if selling pressure increases and ADA drops below $0.620, a retest of $0.5937 is likely.
Technical Indicators Signal Mixed Momentum
The Relative Strength Index (RSI) currently stands at 33.00, approaching the oversold zone. This suggests that selling pressure might be fading, possibly leading to a rebound or a period of price stabilization.
However, the MACD indicator remains in negative territory, with the MACD line below the signal line. This reflects ongoing bearish momentum, though the histogram indicates that selling pressure is weakening.
Derivatives Market Activity Raises Caution
The derivatives market provides additional insights into ADA’s price movement. According to Coinglass data, Open interest has increased by 3.44% to $527.32 million, indicating traders are taking new positions.
However, derivatives volume has declined significantly, falling 28.58% to $913.02 million. The sharp drop in options volume by 92.94%, down to $6.59K, suggests reduced speculative interest. Meanwhile, options open interest dipped slightly by 0.27% to $374.92K, signaling uncertainty in the options market.
