Cardano's Rally Strengthens as ADA Tests Key Resistance Level

Cardano (ADA) extended its rally on Monday, gaining nearly 3% and adding to the previous day's 6% rise. The altcoin is now trading above $0.2600, driven by strong retail demand and bullish derivatives data. Open Interest in ADA futures surged 15% to $614.98 million in 24 hours, indicating increased speculative activity. The funding rate also remained positive, suggesting traders are willing to pay a premium for long positions.

From a technical perspective, Cardano is testing a bullish breakout above a key resistance level at $0.2632. A confirmed breakout could push the price toward $0.3000, with further upside potential targeting $0.3136 and $0.3916. The momentum remains constructive, with the Relative Strength Index (RSI) near 69 and the Moving Average Convergence Divergence (MACD) line holding above the zero line.

On the downside, immediate support is clustered at the 200-day Exponential Moving Average (EMA) around $0.2472, followed by the March 29 low at $0.2328. Deeper pullbacks could target the 50- and 100-day EMAs at $0.2244 and $0.2146, with the 50% retracement level at $0.2260 providing additional support.

The rally is backed by strong retail demand and a positive funding rate, with $2.02 million in liquidations, primarily short positions, reinforcing buy-side dominance. This positional buildup suggests further upside potential for Cardano in the near term.