Cardano (ADA) has been in a downtrend since mid-January, dropping 68% from its January 14 high of $0.42 to around $0.25. The token is now showing signs of a possible recovery as market conditions shift.
Cardano (ADA) Price
The broader crypto market has seen the fear and greed index rise from 12 to 33 over the past week. While the market is still in “fear” territory, the improvement suggests selling pressure is easing.
ADA futures Open Interest on CoinGlass jumped more than 5% in 24 hours to $459.02 million. The positive funding rate of 0.0090% shows that buyers are willing to pay a premium to hold long positions.
Source: Coinglass
CME Group data shows ADA futures trading volumes jumped from 27 contracts on April 15 to 69 contracts on April 17. That is a 155% rise in just two trading days, pointing to growing institutional interest.
The current long/short ratio sits at 0.73. With more traders short than long, a sudden price move upward could trigger forced buying as short positions get liquidated.
The funding rate has also turned negative at times, meaning traders are paying to keep short positions open. This is a setup that can lead to a short squeeze if price climbs fast enough.
On the chart, ADA has broken out of a falling wedge pattern. The token needs several consecutive closes above the upper trendline to confirm a full bullish reversal.
The depth of the wedge suggests a move from $0.25 to $0.30 would represent a 23% gain. Analysts note that $0.28 needs to break first before $0.30 becomes a realistic target.
The 50-day EMA at $0.26 is currently acting as the first major resistance level. The 100-day EMA sits at $0.3009 and the 200-day EMA is at $0.3953, both acting as overhead resistance.
The RSI is hovering around 51, which shows momentum is stabilizing but is not yet strong. Buyers appear hesitant at current resistance levels.
The MACD histogram is marginally above its signal line, keeping the reading slightly positive. This suggests the trend could shift bullish, but has not confirmed a strong move yet.
On the downside, ADA has key support at $0.2328, which was the March 29 low. Below that, $0.2205 marked the February 6 low and would be the next line of defense.
As of April 21, ADA was trading at approximately $0.2554, holding above the $0.25 level for the third consecutive day. The 50-day EMA at $0.26 remains the immediate hurdle for any continued recovery.
The post Cardano (ADA) Price: ADA Down 68% From Its High as Bullish Momentum Builds appeared first on CoinCentral.

