Cardano (ADA) is maintaining a solid sideways trend around the $0.40 mark as of Monday, after the price convincingly closed above the descending channel pattern last week. The developments in the derivatives market reflect a clear improvement in sentiment, as the open interest (OI) of ADA increased, along with a rise in long positions within the trader community.
Positive Sentiment for Cardano in the Derivatives Market
Data from CoinGlass shows that the open interest (OI) of Cardano futures contracts on exchanges surged to $851.17 million on Monday, up from $644.34 million recorded the previous Tuesday, setting the highest level since mid-December. The strong increase in OI indicates that new capital is actively flowing into the market, reflecting growing demand and potentially serving as a key catalyst, fueling the current bullish trend of ADA.
Source: CoinGlass
Alongside this, the long/short ratio of Cardano on CoinGlass has also continuously improved, reaching 1.06 on Monday, approaching the highest level of the month. The ratio surpassing 1 suggests that optimistic sentiment is prevailing, as more traders are betting on ADA’s price continuing to rise in the near future.
Source: CoinGlass
Cardano Price Forecast: ADA closes above the channel pattern
The price of Cardano has made an impressive breakout by closing above the upper trendline of the descending channel pattern—a technical structure formed since mid-October by connecting significant peaks and troughs. This upward momentum was maintained gently until Sunday, with ADA trading around the $0.40 level at the start of the week.
In a positive scenario, if Cardano maintains its current momentum, the price could extend its recovery toward the nearest resistance zone at $0.42, coinciding with the 50-day exponential moving average (EMA). A daily close above this level would act as a catalyst, paving the way for further gains toward the important resistance zone at $0.49.
Daily ADA/USDT Chart | Source: TradingView
Technical indicators also support the bullish trend. The Relative Strength Index (RSI) on the daily timeframe is at 55, surpassing the neutral 50 level, indicating that buying pressure is gradually gaining dominance. Meanwhile, the MACD has issued a bullish crossover signal, with expanding green histogram bars above the neutral line, further strengthening the optimistic outlook.
However, if profit-taking pressure emerges, ADA still faces the risk of correction and could retreat to the nearest support zone around the recent low at $0.32.
SN_Nour
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
XRP is consolidating in the $1.44-$1.54 range, and whale movements may be the key to a breakout
Gate News reports that on March 20, XRP is currently trading within the range of $1.44 to $1.54, with market structure showing clear divergence. Analysts are paying close attention to the movements of large holders (whales), considering them a potential key factor in breaking through the current range.
GateNews1m ago
Strait of Hormuz Shipping Contracts 95%! Gold and Bitcoin Pull Back, Six Countries Issue Joint Statement
The Strait of Hormuz saw shipping traffic plummet 95% due to US-Israel military operations, triggering severe volatility in global energy markets. Gold fell for seven consecutive days, silver declined over 13%, while Bitcoin showed relative resilience, revealing different asset reactions during crises. International response measures to ensure shipping lane safety remain unclear, with the energy supply crisis signaling prolonged price increases.
MarketWhisper29m ago
XRP Today's News: Five-Year Legal Battle Ends, Price Drops After Regulatory Clarity
The U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) released a cryptocurrency asset classification framework, designating XRP as a "digital commodity" and ending a five-year regulatory dispute. Although this news temporarily boosted XRP's price, it subsequently declined due to interest rate policies and market sentiment. The market is focused on the March 27 deadline for XRP ETF applications, which could serve as a new catalyst if approved.
MarketWhisper57m ago
CNBC's Jim Cramer Calls Market "Extremely Oversold," Appears to Reference Bitcoin
Gate News reported that on March 20, Jim Cramer, host of Mad Money under CNBC, an American financial media outlet, commented that the market is in a "very oversold" state, which may involve Bitcoin (BTC). Specific details of the comment have not been disclosed yet.
GateNews58m ago
Ethereum Tests Critical Support Zone, Risk of Breakdown and Extended Downtrend?
The Ethereum Foundation has allocated 3,400 ETH to the decentralized lending protocol Morpho, enhancing its treasury strategy. This includes 1,000 ETH in Morpho Vaults V2, aimed at sustainable DeFi yields, following an earlier deployment of 2,400 ETH last October.
TapChiBitcoin1h ago
Solana on-chain revenue hits 18-month low, SOL may test $80 level
The Solana ecosystem has come under pressure recently, with SOL's price retreating from $97.70 to $87, representing a three-day decline of approximately 11%. Sentiment in the derivatives market is insufficient, with funding rates approaching historic lows, and on-chain DApp revenue has dropped to an 18-month low. Despite relatively solid performance on decentralized exchanges, new products and competition are putting pressure on capital flows. SOL is expected to remain range-bound and weak in the near term.
GateNews1h ago
