Cardano ADA Surges 11% to Test $0.28 Resistance

Cardano's ADA token surged 11% in the past 24 hours, reaching a high of $0.27 before facing immediate resistance at $0.28. The rally was driven by a short squeeze, as open interest dropped 11.68% while the price climbed, indicating that short sellers were forced to cover their positions. The token's momentum shows signs of slowing, with the MACD histogram flattening near zero.

Technical indicators present a mixed picture. The RSI stands at 69.66, nearing the overbought threshold of 70, while the stochastic oscillator is deeply overbought at 93.46. ADA is trading above its major moving averages, with the 7-day SMA at $0.25, the 20-day at $0.24, the 50-day at $0.22, and the 200-day at $0.21. The Bollinger %B is 0.91, suggesting the price is close to the upper band.

Derivatives data shows top traders remain 71.9% net long, with a long/short ratio of 2.55. The taker buy/sell ratio is 1.135, indicating more aggressive buying than selling. Funding rates are neutral at 0.01%. The analysis gives a 55% chance of a bullish path, with targets at $0.29 and $0.32 to $0.34, while a bearish scenario could see ADA fall back to $0.25 support.

At the time of writing, ADA was trading at $0.27, with the $0.28 level remaining the key resistance to watch. A daily close below $0.25 would cancel the bullish outlook, while a close below $0.23 would end the short-term recovery setup.