Cardano Bulls Charge Toward $0.84 – But Can ADA Hold This Critical Support Level?

Cardano's bulls are mounting another assault on the $0.84 resistance level – but this high-stakes poker game hinges on one make-or-break support hold.

The $0.84 Gambit

ADA's latest rally has traders dusting off their 2021 playbooks, eyeing a return to prices not seen since the last bull market frenzy. The cryptocurrency's recent 28% monthly gain suggests momentum is building – until you notice the elephant in the room.

The Support Cliff Edge

Technical charts reveal ADA dancing perilously close to a key demand zone. Lose this foothold, and the much-touted rally could unravel faster than a DeFi protocol audit. The 20-day moving average at $0.58 now serves as both springboard and trapdoor.

Volume Tells the Tale

Spot trading activity paints a conflicted picture – enough inflow to suggest conviction, but not enough to declare all-clear. Derivatives markets show perpetual traders hedging their bets like Wall Street bankers during FOMC week.

As Cardano's ecosystem growth continues outpacing its price action (typical crypto irony), the coming days will determine whether this is a genuine breakout or just another 'buy the rumor' setup. After all, in crypto, the only thing harder than holding support is holding your profits.

ADA approaches critical demand zone 

ADA is hovering just above a key support zone NEAR $0.61, a level that has held since early May. The asset remains locked in a broader descending channel, and price has so far respected the lower boundary. 

Despite the drop, RSI indicators showed potential signs of reversal, with the 14-day RSI printing a reading of 36.62. This reflects growing weakness, but also potential opportunity. 

Therefore, if bulls capitalize on sentiment strength and defend the $0.61 level, a bounce back toward $0.84 becomes increasingly viable within the channel.

Source: TradingView

On-chain derivatives data paints a mixed picture. Open Interest has declined 3.35%, now sitting at $746.81 million. This drop suggests some Leveraged traders may be de-risking positions. 

However, Funding Rates have turned positive, as at the time of writing, the OI-Weighted Funding Rate was at 0.0096%. This meant that longs were willing to pay to maintain exposure, reflecting bullish conviction despite lower volume. 

Stablecoin outflows hint at liquidity challenges

Market-wide liquidity is tightening, with the total stablecoin market cap declining by 3.25% over the past week to $31.38 million. 

Despite this downturn, cardano (ADA) is defying the trend—taker buy dominance remains strong, indicating persistent buying interest.

This divergence highlights ADA’s ability to attract localized demand even as broader crypto inflows wane. 

If stablecoin inflows rebound and price support holds, ADA could be well-positioned for a bullish breakout.

Source: DefiLlama

Binance Futures data reveals a significant long bias among traders. As of June 17, 73.54% of ADAUSDT perpetual accounts remain long, while only 26.46% are short, resulting in a Long/Short Ratio of 2.78.

This indicates that the majority of traders expect a rebound from current levels. 

However, this Optimism also increases the risk of a long squeeze if the $0.61 support breaks. Therefore, the coming days will test the resilience of bullish conviction in the derivatives market.

Can bullish conviction hold ADA above key support?

Sentiment, buy pressure, and technical structure all align at a crucial point for ADA. If bulls manage to hold the $0.61 support zone, a reversal toward the upper channel resistance is possible. 

However, any breakdown may invalidate this outlook and shift sentiment rapidly bearish. The next few sessions will likely determine if ADA’s bullish bias holds true or fades under pressure.