Cardano is trading above the $0.40 support and daily charts are showing controlled selling inside a descending channel structure.
On-chain data has pointed to a rise in whale activity and buy-side dominance resulting from improving sentiment across the Cardano spot and futures markets.
Derivatives metrics shows that bullish positions have increased and funding rates have turned positive prompting the long-to-short ratios to reach monthly highs.
Cardano price forecast presents mixed signals as ADA consolidates near $0.40.This is balancing the bearish long-term trend warnings with short-term recovery attempts.This move is being supported by on-chain and derivatives data.
Weekly trend signals revive downside caution
Market analysts continue to monitor Cardano’s weekly SuperTrend indicator after it flipped bearish near the $1.00–$1.10 region. This signal previously preceded a prolonged downturn, keeping longer-term risk considerations active.
A widely shared tweet by analyst Ali Martinez, compared current conditions with Cardano’s prior macro decline. The post noted that earlier bearish SuperTrend flips capped recovery attempts and guided prices steadily lower.
https://twitter.com/alicharts/status/2000345809326375325?s=20
According to the analysis, ADA is now losing support around $0.40–$0.45, resembling early stages of that earlier downtrend. Volatility has expanded downward, and trend bias remains cautious while price trades below key resistance.
Descending channel suggests corrective structure
Despite higher-timeframe warnings, daily charts show Cardano trading within a structured descending channel rather than panic-driven selling. Price respected channel boundaries, suggesting controlled distribution across recent weeks.
As ADA approached the $0.40–$0.42 demand zone, selling pressure began to slow noticeably. This area aligns with a high-volume node, indicating prior market acceptance and potential buyer interest.
Technical projections shared alongside the chart outlined a possible reaction bounce toward $0.68. That level represents former support and a near-term liquidity zone if momentum stabilizes.
On-chain data supports cautious optimism
On-chain indicators have shown gradual improvement as Cardano price steadies near current levels. CryptoQuant data shows that buyers dominated notable whale activity in both spot and futures markets.
Derivatives metrics also reflected shifting sentiment as CoinGlass reported a long-to-short ratio of 1.19. This marked the highest bullish skew in over a month, signaling growing upside expectations.
Funding rates have turned positive, indicating longs are paying shorts. Historically, similar flips have coincided with short-term rallies, while technical resistance remains near $0.51 within a falling wedge structure.
The post Cardano Price Forecast: ADA Holds $0.40 as On-Chain Signals Turn Bullish appears on Crypto Front News. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.
