Cardano(ADA), technical bullishness and on-chain supply and demand signals align... igniting before recovering to $0.50

Cardano(ADA) is entering a weekly rebound phase, attracting investor attention. Currently trading around $0.35, ADA rose approximately 7% last week, recovering to $0.43, and the market is focusing on the key psychological resistance level of over $0.50, with potential to break through.

Technical Reversal Signal: Successful Defense of Downward Pattern Support

Looking at the daily chart, Cardano has successfully defended the lower support line of a ‘Falling Wedge(’ pattern. After testing this support last Saturday, buying demand surged, resulting in about a 9% increase over the following four days.

Positive signals are also appearing in technical indicators. The Relative Strength Index)RSI( has risen out of oversold territory to 34, and the Moving Average Convergence Divergence)MACD( shows a golden cross, signaling a buy. These are signs that selling pressure is weakening.

If the upward scenario continues, the first resistance point is around $0.49. Breaking this level clearly on a closing basis could open the next target at $0.56, aligned with the 50-day Exponential Moving Average)EMA(. Conversely, if broad market correction intensifies and causes another decline, the $0.39 level is expected to serve as the last defense line.

On-Chain Data and Derivatives Market: Accumulation Signals Detected

Analyzing CryptoQuant’s on-chain data reveals a clear shift in supply and demand for Cardano. Whale investors are increasing buy transactions, and buy dominance is prominent, while market overheating signals are calming down. This is generally interpreted as a typical accumulation)pattern seen at market bottoms.

The sentiment shift in the derivatives market is also noteworthy. According to CoinGlass’s open interest(OI) and funding rate data, the betting direction has shifted from short( to long) positions. The positive(+) funding rate, which turned positive from Wednesday to Thursday at 0.0074%, indicates increased bullish expectations. Past cases show that whenever ADA’s funding rate shifts from negative to positive, a short-term rally often follows.

Investment Perspective: Ventilation Phase Before Technical Breakout

The current phase shows investors leaning toward a potential technical rebound rather than further collapse. The combination of improved on-chain supply/demand and recovering derivatives market sentiment suggests short-term upward momentum.

However, whether ADA can break above $0.50 will be a key turning point for the trend. If technical support holds and on-chain accumulation signals persist, the first target of $0.49 and possibly extending to $0.56 cannot be ruled out. For short-term traders, the $0.39 support level will be a critical point for stop-loss and re-entry decisions.