Cardano (ADA) Price Prediction: Bullish Momentum Heats Up, Derivation and On-Chain Data Release Recovery Signals

In late August, Cardano (ADA) successfully rebounded after touching the key support level of $0.84 last week, stabilizing around $0.92 on August 25. The derivatives market is releasing favourable information in sync with on-chain data, indicating that market sentiment is gradually warming up. The technical aspect suggests that the recent downward momentum may have exhausted, opening up space for a potential bullish trend for ADA.

derivation and on-chain data: capital flow back to ADA

(Source: Coinglass)

According to CoinGlass data, ADA futures open interest (OI) surged from 1.54 billion USD last Friday to 1.77 billion USD on Monday, approaching the historical high of 1.87 billion USD.

Interpretation: An increase in OI signifies that new funds or additional funds are entering the market, enhancing buying power, which helps to drive prices upward.

(Source: DefiLlama)

At the same time, DefiLlama data shows that the market value of Cardano stablecoins has continued to grow since the end of July, reaching 3.858 billion USD on Monday.

Meaning: The increased activity of stablecoins indicates a rise in network usage, attracting more users and capital into the Cardano ecosystem, bringing long-term Favourable Information for ADA.

Technical Analysis: Key Support Levels and Breakpoints

(Source: Trading View)

Trendline Breakthrough: On August 13, ADA broke through the downward trendline that has been in place since December of last year, and at one point tested the psychological level of 1 dollar.

Support level: $0.82–$0.84 range (overlaps with the 61.8% Fibonacci retracement level)

Current price: 0.92 USD (Monday)

Resistance level:

First target: $1.02 (August 14 high)

Second target: 1.17 USD (annual high)

Technical Indicators:

RSI: 58, above neutral 50, indicating strengthening bullish momentum.

MACD: The line crossover reflects a slight hesitation in trader sentiment, but no obvious bearish signal has emerged.

ADA Price Prediction and Risks

Bullish Scenario: If ADA breaks and stabilizes above $1.02, it is expected to challenge the annual high of $1.17.

Retracement risk: If there is short-term pressure, the price may fall back to the 0.84 USD support level. After breaking this level, it may retest 0.82 USD.

Conclusion

Cardano's current derivatives and on-chain data both indicate a capital inflow and an increase in ecosystem activity, coupled with solid technical support. In the short term, ADA is expected to continue its rebound trend. Investors should pay attention to the breakout situation at 1.02 USD as a dividing line for long and short positions, while also keeping an eye on the defense of the support level at 0.84 USD.