ADA recovers $0.250 with derivatives positioning turning more bullish

Key takeaways

• ADA’s long-to-short ratio rose slightly above 1 to 1.01, indicating a modest tilt towards bullish positioning.
• The funding rate flipped positive to 0.0061%, with longs now paying shorts.
• ADA stays above its primary daily EMAs, with immediate support at $0.245 and resistance at $0.299.

Monday saw Cardano move back above a crucial support area, trading around $0.250, after derivatives positioning improved in the wake of last week's 2.85% decline.

ADA continues to sit above its major daily exponential moving averages, underpinning a constructive near-term outlook. Yet momentum is mixed and sell-side pressure is evident, so the market may still face hurdles.

Cardano derivatives positioning turns more positive

According to CoinGlass' data, the ADA long-to-short ratio reached 1.004 on Monday, just above the neutral threshold of one.

The reading implies that long positions slightly exceed shorts in the positions or accounts tracked. That slim gap points to a modest improvement, not a firmly bullish stance.

Cardano's funding rate also flipped positive on Sunday and rose to 0.0061% by Monday. Positive funding means longs pay shorts, which is greater demand for bullish exposure in perpetual futures.

Together, these indicators point to improved sentiment as ADA tries to extend its rebound.

CryptoQuant's summary data takes a more cautious view. The platform flags overheating in both spot and futures markets, along with sell-side dominance, and also notes large whale orders in the futures market.

These signals run against the better long-to-short ratio and positive funding, indicating uneven positioning among traders.

Bullish derivatives demand alone does not prove that spot buying will be sufficient to sustain higher prices.

ADA holds above its major moving averages

At the $0.250 level, ADA trades above its 50-day EMA ($0.230), 100-day EMA ($0.219), and 200-day EMA ($0.241).

Its position above all three averages supports the broader recovery structure, with the horizontal level at $0.245 serving as the closest support reference.

Momentum stays moderately constructive: the RSI sits near 54, above the neutral midpoint but not yet overbought.

However, the Moving Average Convergence Divergence (MACD) remains marginally below zero, suggesting the recovery has yet to build strong upward momentum.

The first downside test is $0.245, followed by the 200-day EMA near $0.241 and horizontal support at $0.236.

A deeper pullback would bring the 50-day EMA at $0.230 and the 100-day EMA at $0.219 into focus. Below those, the analysis identifies rising trendline support around $0.206 and a more distant floor at $0.150.

On the upside, the next major horizontal resistance identified is $0.299, where previous selling interest could cap an extended recovery.

Holding the nearby support band would preserve ADA's constructive technical position, while stronger buying momentum would be needed to push toward that resistance.