Cardano (ADA) Price: Approaching Key Trendline as Recovery Signs Emerge

TLDR

Cardano trades around $0.85 after finding support at the $0.82 trendline level Everstake becomes official Cardano Delegated Representative, expanding network governance Funding rates turned positive at 0.0070%, showing more bullish trader sentiment ADA rallied 9% from support but declined 7% this week, now hovering near key levels Price targets $1.02 if support holds, or $0.76 if it breaks below current levels

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Cardano price shows recovery signs as the cryptocurrency trades around $0.85 on Friday. The digital asset found support around its previously broken trendline earlier this week.

Cardano (ADA) Price

ADA tested the 61.8% Fibonacci retracement level at $0.82 on August 22. The cryptocurrency rallied over 9% from this support zone.

However, the upward momentum could not be sustained. ADA has declined 7% during this week while steadying around the $0.82 support area.

The network continues to expand its governance structure. Everstake became an official Cardano Delegated Representative on Thursday.

Governance Expansion Continues

As a DRep, Everstake gains direct voting power in Cardano’s on-chain governance. The company will vote on protocol upgrades and community initiatives on behalf of ADA holders.

“We’re excited to play an active role in Cardano’s on-chain governance and help shape the future of one of the most decentralized ecosystems in crypto,” Everstake stated in their announcement.

This development highlights the growing expansion of Cardano’s governance network. More DReps provide increased decentralization for the ecosystem.

The governance model allows ADA holders to delegate their voting power. This system ensures broader participation in network decisions.

Cardano Price Prediction

Funding rates have turned positive for Cardano futures contracts. Coinglass data shows the OI-Weighted Funding Rate reached 0.0070% on Friday.

The metric flipped positive on Tuesday after being negative. This indicates that long position holders are now paying short position holders.

Historically, when funding rates flip from negative to positive, Cardano’s price has rallied. The current positive funding rate suggests more traders expect price increases.

Long-to-short ratio data also supports the bullish view. More traders are taking long positions compared to short positions.

The derivatives market sentiment has shifted toward optimism. This change supports the case for a sustained price recovery.

Source: TradingView

Technical analysis shows ADA at a critical juncture. The Relative Strength Index hovers around the neutral level of 50 on the daily chart.

This RSI level indicates indecision among traders. For a sustained rally, the RSI needs to move above 50.

If the $0.82 support level holds, ADA could target its August 14 high of $1.02. This would represent a potential 20% gain from current levels.

A break below $0.82 on a daily basis could send ADA toward $0.76. This level represents the 50% price retracement.

At the time of writing, Cardano trades at approximately $0.85, with traders watching the key support zone closely.

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