Cardano (ADA) price over $0.82 is registering more than 40% in growth over a period of only ten days. With growing derivative interest, favorable technical signals, and growing trader sentiment, everyone wants to know the question, can ADA finally capture the $1 milestone?
Derivatives Data Reflects Strong Bullish Sentiment
The most recent on-chain statistics from CoinGlass indicate a rise in Open Interest (OI) 16.3% higher over the past 24 hours to $1.44 billion. That is just shy of its historical high of $1.50B in January. Increased OI generally indicates rising market involvement and liquidity both of which are favorable to more bearish price action.
Additionally, the funding rate has gone positive at 0.0219%, showing that traders are paying a premium to maintain long positions. The long/short ratio also is bullish, with longs representing 50.02% of taker volume, from 48.72% the last day clear evidence of more traders betting on ADA to increase.
Technical Outlook:
Technically, ADA has broken through the $0.80 resistance and is now testing the 50% Fibonacci retracement level at $0.8233, as measured from the December high of $1.3264 to the April low of $0.5110.
A break above this level with confirmation could drive ADA to the next significant target: the 61.8% Fibonacci level at $0.9214. If momentum gets its way, regaining $1 is not unrealistic.
The MACD is strictly bullish, with MACD and signal lines in the positive and green histogram bars strengthening. The Exponential Moving Averages (EMAs) 50-day, 100-day, and 200-day are all moving in an upward direction, which raises the chances of a Golden Cross, a generally strong bullish sign.
Yet, the Relative Strength Index (RSI) is at 79, approaching overbought levels. This may imply a temporary cooldown or sideway consolidation before another upward move.
Key Support Zones For Cardano
In the event of rejection at $0.8233, price can retreat to $0.76, a previous resistance converted into support, and possibly lower to the 200-day EMA at $0.6894. These levels could serve as cushions in the event of profit-taking or general market pullback.
With rising open interest, robust buying attitude, and technicals tilted upwards, Cardano appears ready to break out towards $1. While the RSI does suggest potential near-term resistance, overall momentum is still bullish.
Should ADA hold onto current prices and move over $0.92 within days, the $1 barrier could be just around the corner, a barrier it has not seen since early 2024.
Also Read: Cardano Midnight Glacier Airdrop Expects to Start Next Week
