Cardano (ADA) is showing early signs of a resilient recovery, gaining 4% to trade around $0.70 on Tuesday after a sharp 7% drop the previous day. While Bitcoin (BTC) and Ethereum (ETH) remain relatively flat in comparison, ADA’s price action and underlying on-chain metrics suggest growing bullish momentum that could position it to outperform the broader crypto market in the near term.
This potential outperformance isn’t just speculative—it’s backed by technical structure, sentiment shifts, and increasing confidence among traders. As market participants reassess risk and capital flows return to altcoins, Cardano’s unique combination of undervaluation, strong support levels, and improving on-chain health makes it a compelling candidate for a meaningful rebound.
👉 Discover how smart money is positioning ahead of the next crypto surge.
Key Support Holds: ADA Rebounds from Critical Zone
Last week, Cardano’s price declined by 36.36%, followed by an additional 7% drop on Monday. However, the fall appeared to lose steam as the price retested a major support zone near $0.64—a level with significant technical confluence.
This zone aligns with several key indicators:
- The former descending trendline now acting as support
- The 61.8% Fibonacci retracement level at approximately $0.67
- A bullish order block ranging from $0.64 to $0.57, where institutional buying was previously concentrated
An order block represents a historical price range where large market participants placed substantial buy orders. When price revisits these zones, it often triggers renewed demand—especially if macro conditions stabilize.
With the $0.64 level holding firm, ADA has room to climb toward its next resistance at **$0.98**, a move that would represent over 40% upside from current levels. However, this bullish scenario hinges on maintaining support above $0.57. A daily candle close below that threshold would invalidate the recovery thesis and potentially open the door to a retest of $0.50.
Technical Indicators: Mixed Signals but Room for Upside
Despite the recent rebound, technical indicators remain cautious but not bearish.
The Relative Strength Index (RSI) sits at 44—below the neutral 50 mark—indicating that downward momentum still has some influence. However, the fact that the RSI has stabilized and hasn’t plunged into oversold territory (below 30) suggests selling pressure is waning.
For sustained bullish momentum to take hold, the RSI must break and hold above 50. Such a move would confirm increasing buying interest and could catalyze further short-covering and long entries.
Additionally, price action shows a potential double-bottom formation forming around $0.64, which—if confirmed—would strengthen the case for a reversal. Traders are watching for a decisive close above $0.75 to confirm this pattern and signal the start of a new uptrend.
On-Chain Data Reveals Growing Bullish Sentiment
Beyond chart patterns, on-chain metrics are painting an increasingly optimistic picture for Cardano’s recovery.
According to Coinglass, ADA’s long-to-short ratio has climbed to 1.06, the highest level in over a month. A ratio above 1 means more traders are opening long positions than short ones—reflecting growing confidence in a price rebound.
Even more telling is the OI-weighted funding rate, which currently stands at +0.0007%. This positive value indicates that long-position holders are paying shorts—a sign of strong bullish positioning in the futures market.
Funding rates are derived from perpetual swap contracts and are influenced by open interest (OI). When longs pay shorts, it typically means demand for leveraged long positions is high, often preceding upward price movement.
👉 See how real-time funding rates can help predict market reversals.
This shift in trader behavior suggests that despite recent volatility, market sentiment is turning constructive. Traders aren’t just buying ADA—they’re doing so with leverage, signaling conviction in a recovery.
Why ADA Could Outperform BTC and ETH
While Bitcoin and Ethereum continue to consolidate amid regulatory uncertainty and macroeconomic headwinds, altcoins like Cardano are entering oversold territory—creating asymmetric risk-reward opportunities.
Here’s why ADA may outperform:
- Deep Correction = Higher Upside Potential
ADA’s 36% weekly drop far exceeds BTC and ETH’s pullbacks, meaning it has more room to rebound proportionally. - Strong Institutional Support Zone
The $0.64–$0.57 order block represents a historically significant accumulation area, increasing the likelihood of sustained buying pressure. - Improving Market Sentiment
With funding rates turning positive and long positions rising, trader psychology is shifting from fear to optimism. - Upcoming Network Developments
Although not priced in yet, ongoing upgrades to Cardano’s scalability and smart contract capabilities could act as catalysts for renewed investor interest.
While BTC remains the market leader and ETH benefits from ecosystem dominance, ADA’s combination of low valuation, strong technical support, and improving on-chain health gives it an edge in a risk-on environment.
Risks to the Bullish Outlook
No investment is without risk—and Cardano is no exception.
The primary bearish trigger would be a **daily close below $0.57**. That level marks the lower boundary of the current bullish order block. A breakdown would suggest institutional support has failed, potentially leading to accelerated selling toward $0.50 or lower.
Additionally, broader market conditions remain fragile. A resurgence of macroeconomic fears—such as rising interest rates or geopolitical tensions—could dampen risk appetite across all cryptocurrencies, delaying ADA’s recovery.
Trader leverage also poses a risk. While high long positions can fuel rallies, they also increase vulnerability to liquidations during sudden downturns. If price dips sharply, cascading long liquidations could amplify downward momentum.
Frequently Asked Questions (FAQ)
Q: What is the significance of the $0.64 support level for Cardano?
A: The $0.64 level aligns with a former trendline, Fibonacci retracement level, and a known institutional order block—making it a high-probability reversal zone.
Q: How do funding rates affect Cardano’s price?
A: Positive funding rates indicate that traders are paying to hold long positions, reflecting bullish sentiment and often preceding price increases.
Q: Can ADA really outperform Bitcoin and Ethereum?
A: In bull markets or recovery phases, altcoins like ADA often see higher percentage gains due to their lower market cap and deeper corrections.
Q: What would invalidate the current bullish outlook for ADA?
A: A daily candlestick close below $0.57 would break key support and likely trigger further downside toward $0.50.
Q: Where can I track real-time on-chain data for Cardano?
A: Platforms like Coinglass and Artemis provide live updates on funding rates, open interest, and long/short ratios.
Q: Is now a good time to buy Cardano?
A: With strong support holding and sentiment improving, current levels offer a favorable risk-reward setup—but always conduct your own research and manage risk appropriately.
👉 Monitor live on-chain metrics and funding trends before making your next move.
Final Thoughts
Cardano’s recent price recovery may be more than just a bounce—it could be the early stage of a broader rally. With key support holding, on-chain sentiment turning bullish, and technical indicators stabilizing, ADA is well-positioned to outperform larger cryptocurrencies like BTC and ETH in the coming weeks.
While risks remain, particularly around broader market sentiment and potential breakdowns below $0.57, the current setup favors upside if support holds. Traders and investors watching for altcoin momentum should keep a close eye on ADA’s progress toward $0.75—and ultimately $0.98.
As always, approach with caution, use proper risk management, and stay informed through reliable data sources.
Core Keywords: Cardano (ADA), ADA price forecast, on-chain data, funding rate, long-to-short ratio, support level, crypto recovery