Cardano (ADA) shows early signs of recovery as market sentiment shifts from bearish to bullish. ADA price finds support around its key level and continues its recovery on Monday after falling nearly 13% the previous week. Derivatives data support recovery ahead as ADA’s funding rates flip positive and bullish bet rises among trades. Moreover, Cardano’s involvement in regulatory discussions with the UK’s Financial Conduct Authority underscores its commitment to shaping a balanced regulatory landscape.
Derivatives market hints at a recovery ahead
Cardano’s derivatives data shows a bullish bias. CoinGlass’s OI-Weighted Funding Rate data shows that the number of traders betting that the price of Cardano will slide further is lower than that anticipating a price increase.
The metric has flipped a positive rate on Sunday and reads 0.0053% on Monday, indicating that longs are paying shorts. Historically, as shown in the chart below, when the funding rates have flipped from negative to positive, the Cardano price has rallied sharply.
Cardano Foundation joins hands with IOTA and INATBA for regulations in the UK
According to the IOTA report last week, the IOTA Foundation, in collaboration with INATBA and the Cardano Foundation, has urged the UK’s Financial Conduct Authority (FCA) to reconsider its approach to crypto regulation. This collaboration critiques the current FCA’s one-size-fits-all approach and emphasizes the need to differentiate between centralized custodial services and decentralized non-custodial protocols.
“Most consumer harm in crypto hasn’t come from DeFi. It comes from centralized custodians with opaque practices – exactly the kind of services that traditional regulation handles well. These practices aren’t inherent to the design of DeFi protocols with transparent and auditable code,” says the blog report.
The coalition advocates for industry-led self-regulation in DeFi and urges the UK to seize the opportunity to become a global leader in smart, innovation-friendly crypto policy.
