Can Cardano Break Above $0.301? Derivatives Sentiment Signals Reversal

▲ Cardano (ADA)/ChatGPT-generated image ©

Cardano (ADA) is showing increased potential for a short-term rebound amid an improving mood in the derivatives market.

According to investment media outlet FXStreet on February 12 (local time), Cardano is trading around $0.257 after posting a weekly decline of more than 4%. Although the price remains under short-term downward pressure, derivatives indicators are beginning to signal gradual improvement in investor sentiment.

Based on Coinglass data, the open interest-weighted funding rate has turned positive at 0.0045%. This structure means that long position holders are paying short position holders, indicating that more investors are betting on price increases than declines. Notably, there have been past instances where Cardano’s price rebounded sharply after the funding rate shifted from negative to positive. The long-to-short ratio also stands at 1.09, above 1, suggesting that bullish bets currently outweigh bearish ones.

Technical indicators suggest it may be premature to call a full trend reversal, but the loss of downward momentum is apparent. On the daily chart, the 9-day simple moving average sits at $0.266, remaining above the current price and maintaining a short-term bearish structure. However, while the MACD histogram is still in negative territory, it is narrowing, signaling weakening downside momentum. The Relative Strength Index (RSI) has risen to 32.7, moving out of oversold territory and indicating stabilization.

On the upside, a descending trendline formed from $0.427 continues to cap gains. Immediate resistance is seen at $0.301, followed by $0.325. A daily close above $0.301 could open the door to an extended technical rebound toward $0.325. However, failure to break above the 9-day moving average at $0.266 may allow selling pressure to regain control.

Ultimately, Cardano is navigating a phase of balance between recovering derivatives market sentiment and emerging technical rebound signals. Whether a short-term recovery materializes will likely hinge on a decisive breakout above the $0.301 level.

Disclaimer: This article is for investment reference only and the publisher is not responsible for any investment losses incurred based on it. The information provided should be interpreted for informational purposes only.