Cardano: New Buy Signal At Key Support

Cardano (ADA) has triggered a TD Sequential buy signal, drawing attention due to its timing at a critical descending channel support level. The previous sell signal closely mirrored a recent local top, creating heightened trader interest. The price reaction at the $0.49-$0.50 zone is significant as it represents a historically relevant support area.

Derivatives data provides additional support for a potential rebound. A buy-dominant Commitment Volume Delta (CVD), rising long exposure, and positive funding rates collectively indicate strengthening buyer control and a willingness to execute market buys, a common sign of early sentiment improvement. The Binance Long/Short Ratio shows 70.33% long positions versus 29.67% short, reflecting increased upside expectations. The OI-Weighted Funding Rate turned positive at 0.0045% on November 16th, indicating long traders are now paying a premium.

The reaction at the channel floor is a key element. A move toward mid-channel resistance would signal improving momentum, potentially exposing price targets of $0.6155 and $0.7015. However, maintaining support at $0.50 is crucial to sustain the recovery outlook.

While the signals are encouraging, traders are seeking confirmation through higher lows, cleaner candles, and sustained participation. A coordinated effort across technical and derivatives metrics strengthens the case for a potential reversal. However, elevated long positions introduce risk of volatility if ADA stalls near resistance. Continued defense of the $0.50 zone, coupled with positive funding rates, is necessary for a sustained push toward mid-channel resistance.

Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility.