Key Takeaways
What’s fueling Cardano’s latest recovery?
A rebound from $0.63 support and positive Fund Flows show renewed retail participation and strong buying momentum.
What could shape ADA’s next move?
Derivative data highlight bullish leverage toward $0.99, but profit-taking near resistance could spark brief pullbacks.
Cardano [ADA] returned to the spotlight after recovering strongly from its recent dip and recording an 11% surge over the last 24 hours. The bounce followed a successful retest of the $0.63 support — a key zone that previously marked a market gap — reinforcing ADA’s short-term bullish structure.
The altcoin’s recovery revived optimism among traders as prices now press against a descending trendline resistance near $0.7148.
The key question is whether bulls can force a breakout or if sellers will defend the zone again.
The Stochastic RSI, rebounding from oversold levels at press time, supported the bullish outlook and hinted at continued upward momentum.
Source: TradingView
ADA retail traders step in
AMBCrypto’s analysis of Fund Flow data shows smaller investors re-entering the market. Cardano’s net inflows remain positive, indicating rising capital rotation back into the network.
Data from Gate showed that smaller wallets drove most inflows — about $368.41 million — compared to $3.8 million from large orders.
Such inflow distribution typically signals early retail confidence. In previous recovery phases, this behavior has preceded broader repositioning by whales once sentiment stabilizes.
Source: Gate
Leverage tilts toward the bulls
Momentum in the Derivatives market also favored the buyers.
The Aggregated Long/Short Ratio stood near 3.36–3.5, showing long positions outnumbering shorts roughly three to one. This reflects rising trader conviction, but crowded long exposure can trigger quick reversals if profits are booked too fast.
Source: Coinalyze
While a Long/Short Ratio near 3.36–3.5 highlighted bullish conviction, it also suggested an overleveraged crowd. If ADA stalls under $0.72, these leveraged longs could trigger a brief liquidation cascade before another leg up.
Liquidity magnet at $0.99 in focus
That’s not all. CoinGlass Liquidity Heatmap indicated a significant cluster around the $0.99 level, an area that could attract price action if ADA breaks above its current resistance.
This level could act as a “liquidity magnet,” drawing prices upward. Failure to breach may lead to a short consolidation before another attempt.
Source: CoinGlass
