ADA Bulls Take Charge as Sentiment and $0.61 Support Align with Positive CVD Signal

• Cardano is testing a Very Crucial Support at 0.61 With Bullish Forces Supporting
• Smart Money and Crowd have turned Positive Sentiment on ADA
• Rates of Funding and Buy-Dominant CVD Reference ADA Tension to Rebound

Cardano (ADA) shows a significant gradient in sentiment at the moment as both the retail community and institutional players are sharing their excitement about their long, bullish positions. The Market Prophit data demonstrate that the retail crowd sentiment score was at 1.52, whereas smart money sentiment was at 0.72. Both readings are still in the positive lane, indicating a probable short-term convergence of these two disparate types of investors.

This trend was further strengthened by the fact that, according to CryptoQuant information, the 90-day Spot Taker Cumulative Volume Delta (CVD) is still buy-dominant. The trend shows a continuation of sustained accumulation activity on large spot exchanges and, therefore, it signals that demand is stronger than the pressure to sell. Good CVD coincidence with sentiment indicators plays a part in the bigger picture of growing optimism among e-traders.

ADA Trades Near Key Support Amid Bearish Pressure

ADA is trading under pressure despite the positive feeling. As of the press time, the token sells at about 0.614, having depreciated by 2.0 percent over the last 24 hours. The price between the trading range recorded over the period took place between 0.6013 and 0.6268. The price action of ADA is still staying in a wider descending channel, and lower highs as well as lower lows are observed using the daily chart.

Source: Coingecko

The $0.61 price point is becoming a dangerous point of support, since it has held up since early May. This has earlier served as a launching pad for small rebounds and is one major technical area to monitor. Volumes were reported as being about $536 million in the past 24 hours, a moderate level. The market capitalization of ADA at present is pegged at 22.16 billion dollars, and the number of tokens on the market is more than 36 billion.

Funding Rates and Technical Outlook Suggest Reversal Potential

The latest chart data shows that Open Interest (OI)-Weighted funding rates have remained mostly positive since April. Positive funding generally indicates that long positions are paying short positions, often a signal of bullish expectations in the derivatives market. This coincides with ADA’s price stabilization following a steep decline earlier in the year.

Source: Coinglass

If bulls succeed in defending the $0.61 support zone, a move toward the upper boundary of the descending channel could occur. However, a breakdown below this level may signal a shift in short-term sentiment and invalidate the current bullish setup. Traders are likely to monitor both funding rates and cumulative volume indicators closely in the coming sessions.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.