October 12th 2026, 7:24 AM
Cardano Bounces Back from Correction, Sentiment Turns Bullish
Key Summary
Cardano (ADA) reclaimed $0.250 after a 2.85% correction last week, with derivatives sentiment improving and long-to-short ratios favoring bullish positioning. Funding rates turned positive, and the cryptocurrency remains above its major daily EMAs, supporting a constructive near-term outlook. However, mixed momentum and sell-side pressure suggest the recovery still faces obstacles.
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Market Analysis
Cardano's long-to-short ratio edged above one to 1.01, indicating a slight tilt toward bullish positioning. Funding turned positive and reached 0.0061%, with longs paying shorts. ADA holds above its major daily EMAs, with immediate support at $0.245 and resistance at $0.299.Technical Indicators
Cardano recovered above a key support zone on Monday, trading near $0.250 as derivatives positioning improved. The narrow margin between longs and shorts suggests a modest improvement rather than strong bullish conviction. Cardano's funding rate also turned positive on Sunday and increased to 0.0061% on Monday.Market Outlook
Bullish derivatives demand alone does not establish that spot buying will be sufficient to sustain higher prices. The Relative Strength Index stands near 54, above its neutral midpoint without indicating overbought conditions. However, the Moving Average Convergence Divergence indicator remains marginally below zero, suggesting the rebound has yet to develop strong upward momentum.Resistance and Support
The first downside test is $0.245, followed by the 200-day EMA near $0.241 and horizontal support at $0.236. A deeper pullback would bring the 50-day EMA at $0.230 and the 100-day EMA at $0.219 into focus.#Cardano#ADA#US#Crypto