Cardano (ADA) appears to be at a pivotal juncture, with a convergence of technical and derivatives signals suggesting a possible shift from its recent corrective trend. Traders are keenly observing whether these early bullish indicators can translate into a sustained recovery after weeks of steady selling pressure.
Technical Signals Point to a Reversal
A key development signaling this potential turnaround is the emergence of a new TD Sequential buy signal for ADA. This indicator's appearance is particularly impactful as it aligns with a crucial descending channel floor, specifically within the historically significant $0.49–$0.50 range. This zone has consistently acted as a stabilization point for Cardano in past cycles, making its current reaction here a critical test for buyers aiming to establish a stronger base. For any recovery to gain traction, successfully holding this fundamental support level is paramount, potentially opening the door for a move towards mid-channel resistance and beyond.
Derivatives Market Reinforces Growing Confidence
Further reinforcing this bullish outlook, Cardano's derivatives market is showing a clear shift in sentiment. The Futures Taker CVD has flipped to buy-dominant, indicating aggressive market buying and a strong willingness from traders to execute market buys. This aggressive buyer commitment is complemented by a notable rise in long exposure, with the Binance Long/Short Ratio significantly favoring long positions, signaling increased market participant expectations for an upside move. Adding to this growing confidence, the OI-Weighted Funding Rate has turned positive, where long traders are now paying a premium, reflecting renewed conviction across the market. These aligned signals—the TD buy signal, strong channel floor reaction, improving Taker CVD, rising long exposure, and positive funding rates—collectively strengthen the case for a potential trend reversal. However, for a confirmed bullish shift, ADA must decisively clear mid-channel resistance. If buyers can defend the $0.50 zone and maintain consistent pressure, upside targets at $0.6155 and $0.7015 remain attainable, marking a significant return of bullish momentum.
