Hassan Maishera
TL;DR
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Cardano trades above $0.224 after gaining approximately 17% this week.
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ADA’s long-to-short ratio has climbed to 1.10, signaling stronger bullish positioning.
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Whales holding between 1 million and 10 million ADA accumulated 60 million tokens since Sunday.
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ADA faces resistance at $0.231, $0.236, and $0.245, while support sits near $0.213.
Cardano extended its weekly rally on Friday, trading above $0.224 after finding support near an important demand zone earlier in the week.
Improving derivatives data and accumulation by some large holders have strengthened sentiment around ADA. Momentum indicators also suggest the recovery could continue if buyers overcome the approaching resistance levels.
Cardano has gained approximately 17% this week.
ADA Traders Increase Bullish Positions
Cardano’s derivatives market reflects growing optimism among traders. According to CoinGlass, ADA’s long-to-short ratio reached 1.10 on Friday, approaching its highest level in more than a month.
A ratio above 1 indicates that long positions outnumber short positions, meaning more derivatives traders expect ADA to appreciate than decline.
However, rising bullish exposure can increase liquidation risk if the price unexpectedly reverses.
ADA’s open interest-weighted funding rate also supports the improving outlook. The rate turned positive on Sunday and reached 0.0087% by Friday. Positive funding means traders holding long positions are paying those with short exposure to keep their contracts open.
This structure indicates stronger demand for bullish leveraged positions. If the funding rate rises too quickly, however, it could signal excessive optimism and leave the market vulnerable to a long squeeze.
Santiment’s Supply Distribution data shows that some Cardano whales bought the recent dip.
Wallets holding between 1 million and 10 million ADA accumulated approximately 60 million tokens since Sunday.
Meanwhile, addresses holding between 10 million and 100 million ADA kept their balances relatively unchanged. Smaller whales holding between 100,000 and 1 million tokens sold approximately 10 million ADA over the same period.
The net accumulation by the 1 million-to-10 million cohort suggests continued interest from large investors and has accompanied Cardano’s weekly price recovery.
ADA Holds Above the 50-Day and 100-Day EMAs
Cardano traded around $0.224 on Friday, maintaining a constructive short-term technical structure.
ADA remains above its 50-day and 100-day exponential moving averages but below the 200-day EMA. This positioning suggests the token is recovering within a broader downtrend rather than having completed a full bullish reversal.
Buyers have successfully defended the recent breakout above the mid-$0.210 region, making that area important for maintaining momentum.
Cardano’s Relative Strength Index stands at 64 on the daily chart. The reading places ADA firmly in bullish territory while remaining below the overbought threshold of 70. This suggests the token may still have room to advance before momentum becomes excessively stretched.
The Moving Average Convergence Divergence indicator has moved slightly into positive territory, providing another sign that bullish pressure is increasing.
However, momentum remains fragile as ADA approaches several areas of overhead supply.
The 61.8% Fibonacci retracement level near $0.231 represents Cardano’s first immediate resistance.
A break above this point would bring the horizontal barrier at $0.236 into focus. The stronger resistance zone sits around $0.245, where the 200-day EMA converges with a horizontal supply level. A decisive daily close above this area would provide stronger confirmation that Cardano’s broader trend is turning bullish.
If buyers clear $0.245, the next significant resistance pivot would sit near $0.299. The 50% Fibonacci retracement level at approximately $0.213 provides Cardano’s nearest support.
Below that, the 100-day EMA at $0.198 and the 38.2% Fibonacci retracement around $0.195 form a broader demand zone in the upper-$0.190 range.
A deeper correction could expose support at $0.173. If that level also fails, the more important structural floor near $0.150 would come into view.
For now, whale accumulation, positive funding and strengthening momentum favor further gains, but ADA must clear the $0.231–$0.245 resistance range to confirm a more durable breakout.
