Cardano (ADA) Price Outlook…Mixed Indicators Signal Caution as Rally Halts

▲ Cardano (ADA)/AI generated image ©

Cardano (ADA) saw a sharp rise of over 11% last week, then pulled back to the $0.25 level, taking a breather. While it maintains a bullish structure above key moving averages, mixed sentiment in derivatives investment and sell-side dominance along with overheating signals in on-chain indicators are raising concerns about its short-term direction.

According to investment specialized media FXStreet on September 28 (local time), Cardano traded at $0.252 today after rising over 11% last week. In the derivatives market, the Long-to-Short Ratio approached its lowest level in about a month at 0.63. A Long-to-Short Ratio below 1 indicates that there are relatively more positions betting on a price decline.

On the other hand, the Funding Rate turned positive on the 17th and recorded 0.0050% today. This shows that bullish sentiment remains, as long position holders are paying fees to short positions. With the Long-to-Short Ratio and Funding Rate sending different signals, it was analyzed that no clear direction has been formed in the derivatives market.

On-chain indicators showed a relatively cautious trend. According to CryptoQuant data, large whale orders were detected in the ADA futures market, but sell-side dominance and overheating conditions also appeared after the recent rally. Overheating signals were also confirmed in the spot market, and the remaining indicators showed neutral levels, indicating an overall cautious investment sentiment with a slight bearish bias.

Technically, the short-term bullish structure is still maintained. ADA is trading above the 50-day Exponential Moving Average (EMA) of $0.215, the 100-day EMA of $0.209, and the 200-day EMA of $0.239, as well as above the horizontal support level of $0.236. The Relative Strength Index (RSI) maintained upward momentum at 63, and the Moving Average Convergence Divergence (MACD) also remained in positive territory, indicating that buying pressure continues to dominate in the short term.

In case of a decline, $0.236 and the 200-day EMA of $0.239 were presented as key support zones, and if further correction continues, $0.215 and $0.209 were identified as the next support levels. Below that, $0.197 and $0.150 are lower support zones. Conversely, if the uptrend resumes, $0.299 was suggested as the next major resistance level.

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