Cardano (ADA) held steady at $0.29 on Thursday after gaining 14% the prior day. The price gain came as the coin’s on-chain conditions improved and derivatives markets saw increased activity. Whale accumulation also increased this week, with funding rates becoming positive.
The ADA price is trading above the long-term descending trendline that got breached the prior day. The trendline is near $0.28. The area is now significant support. If the price is able to hold above this area, the price action is constructive in the short term.
ADA Tests Descending Resistance Near $0.30
CryptoPulse, an analyst, highlighted that the price is testing the descending resistance level in the four-hour chart. The price is trading near the $0.30 area. If the price is able to hold above this area, the next area to watch is between $0.32 and $0.34.
Source: X
Santiment’s Supply Distribution shows whale accumulation. Large wallets added 260 million ADA between February 14 and Thursday. The large wallets are comprised of 1 million to 10 million ADA and 10 million to 100 million ADA. The data shows mid-sized wallets reduced their exposure during the same period.
The 100,000 to 1 million ADA wallets offloaded nearly 20 million ADA during the period. Analysts noted this divergence between cohorts. It shows smaller whales may be unloading ADA. The larger whales are using the dip to accumulate the token.
Source: Santiment
Also Read: XRP Consolidates in Key Range, Bulls Target $1.60 Next
Funding Rates Turn Positive as ADA Shows Steady Momentum
CoinGlass derivatives data shows the token has positive funding rates. The rates turned positive on Tuesday. The rates rose to 0.007% by Thursday. This shows that long positions are dominant. As shown in the chart, past instances of rising funding rates show ADA price rallies.
Source: CoinGlass
ADA is currently trading at $0.2923 as of Thursday. The daily chart is showing stable momentum. The RSI is at 52, slightly higher than the middle area. The MACD is showing the line is above the MACD line in the positive area.
The token is still limited due to the 50-day EMA at $0.31. Breaking through this EMA will have more conviction. the coin is being tested as an early form of resistance.
The support is still at the broken trendline at $0.28. Breaking through this area may affect the uptrend. The next area is at $0.24, which is the horizontal area. Buyers have defended this area in the past declines.
The upside target for the cluster is at the $0.32 price level. This level coincides with the horizontal resistance and the 50-day EMA. A close above this level would likely strengthen the case for the bulls.
Source: TradingView
It would also likely pave the way for the price to reach the $0.35 level. For now, cryptocurrency remains in a constructive base as long as it remains above the $0.28 level.
Also Read: Cardano Surges 18% as Volume Spikes Amid Key Network Upgrades
