- Cardano (ADA) rebounds strongly from key support at $0.77, trading above $0.84 on Monday.
- Derivatives data signals bullish momentum with funding rates flipping positive.
- Stablecoin growth on ADA ecosystem reaches a record $40.37 million, boosting network activity.
- Technical breakout confirmed with ADA eyeing $0.92 and potentially $1.02 if momentum sustains.
- Risks remain, as failure to hold above $0.84 could trigger a retest of $0.77 support.
Cardano Extends Gains After Rebound
Cardano (ADA) price is extending its gains after a strong rebound from key support last week, trading above $0.84 at the time of writing on Monday. The renewed bullish sentiment is supported by derivatives market activity, rising stablecoin capitalization, and a confirmed bullish breakout on the charts.
The recovery comes after ADA retested its 100-day EMA at $0.77 on September 1 before bouncing back 4.19% into the weekend. If ADA sustains its current momentum, it could climb toward $0.92 in the short term and potentially revisit the $1.02 level set on August 14.
Cardano’s Derivatives Show Bullish Sentiment
On-chain and derivatives data confirm growing optimism among ADA traders. According to Coinglass OI-Weighted Funding Rate data, funding rates flipped positive on September 2 and remained at 0.0079% on Monday. This indicates that longs are paying shorts, signaling that traders expect higher prices ahead.
Stablecoin Activity on ADA Ecosystem Hits Record High
Data from DefiLlama shows that Cardano’s stablecoin market capitalization surged to $40.37 million on Sunday — its highest ever. The increase highlights rising network usage and liquidity, which could attract new users and further strengthen ADA’s ecosystem fundamentals.
Cardano Price Outlook: Bullish Breakout Confirmed
From a technical perspective, ADA has broken out of a falling wedge pattern on the 4-hour chart, a setup that typically favors the bulls.
Also Read: Cardano Price Prediction: Can Whales Drive ADA Higher as Retail Sentiment Turns Bearish?
- 4-Hour Chart Indicators:
- RSI stands at 58, above neutral, suggesting bullish momentum.
- MACD shows a bullish crossover, further strengthening the case for an extended rally.
- Daily Chart Signals:
- ADA reclaimed support at the 100-day EMA ($0.77).
- A daily close above $0.84 could confirm bullish continuation toward $1.02.
- RSI is neutral at 50, requiring further strength to sustain momentum.
- MACD histogram is shrinking in red, indicating fading bearish pressure.
Risk Factors: Can ADA Hold Its Gains?
Despite the bullish setup, risks remain. If ADA fails to close above $0.84, a correction could see it retest the $0.77 support zone. A break below that level may weaken the bullish outlook and invite further selling pressure.
Cardano (ADA) bulls are back in control, supported by derivatives data, stablecoin growth, and technical indicators pointing to further upside. As long as ADA holds above $0.84, the next targets lie at $0.92 and $1.02. However, traders should watch for potential pullbacks toward $0.77 if momentum falters.