Cardano (ADA) is sending clear recovery signals after bouncing back from a key support zone last week. This optimism is reinforced by the increase in open interest (OI) along with the rising stablecoin market capitalization, reflecting a gradually improving market sentiment. Additionally, technical indicators also show that recent selling pressure is weakening, opening up room for a new growth phase.
Derivatives and on-chain data of Cardano reveal recovery prospects
According to data from CoinGlass, the total open interest of Cardano futures on exchanges has surged from 1.54 billion USD on Friday to 1.77 billion USD on Monday, just a short distance from the record level of 1.87 billion USD. This trend reflects new capital continuing to flow into the market, accompanied by increasing buying demand – a factor that could serve as a catalyst for ADA's recovery.
In a parallel development, data from DefiLlama shows that stablecoin market capitalization within the Cardano ecosystem has continuously expanded since the end of July, reaching 38.58 million USD on Monday. This growth is seen as a positive signal, as the abundant stablecoin flow not only bolsters network usage demand but also opens up opportunities to attract more new users and investors to the ADA ecosystem.
Cardano Price Forecast: ADA maintains support around the key zone
On August 13, the price of Cardano (ADA) officially broke through the downward trend line formed from a series of peaks since last December, while also testing the psychological level of 1 USD the very next day. However, the upward momentum did not last long: ADA quickly adjusted, losing 5.4% last week before bouncing back from a key support zone – an area that coincides with the previous resistance line and is close to the 61.8% Fibonacci retracement level at 0.82 USD. This is considered a crucial support zone. Moving into this week, on Monday, ADA is fluctuating around the 0.92 USD mark.
If the recovery momentum is maintained, ADA could retest the peak of August 14 at 1.02 USD. Successfully closing above this level would open up new breakout potential, bringing ADA closer to the yearly peak at 1.17 USD.
Technical indicators are also slightly leaning towards the bulls: The Relative Strength Index (RSI) on the daily frame is currently at 58 – above the neutral threshold of 50, indicating that upward momentum is gradually gaining dominance. Meanwhile, the MACD line and the MACD signal line are showing convergence signals, reflecting the indecisiveness of traders.
Conversely, in a correction scenario, ADA is likely to return to test the support area around 0.84 USD.