Cardano (ADA) traded near $0.222 on Monday after posting a 15% gain last week, with technical momentum improving and funding rates turning positive. Buyers now face resistance between $0.231 and $0.245, a zone that could determine the next leg of the recovery.
ADA Momentum Improves as Funding Turns Positive
ADA traded above its 50-day and 100-day exponential moving averages, supporting a stronger short-term technical structure. A move through the $0.231-$0.245 resistance zone would extend the current recovery.
CoinGlass data shows Cardano’s long-to-short ratio at 0.94, indicating that short positions slightly outnumber longs. However, the narrow gap points to cautious positioning rather than heavy bearish conviction.
Funding data sends a different signal. Cardano’s open interest-weighted funding rate turned positive on Saturday and reached 0.0097% on Monday, showing stronger demand for bullish leveraged exposure.
Wyckoff Setup Keeps December Upside in Focus
CryptoQuant’s summary data shows large whale orders in Cardano futures, while most other tracked measures remain neutral. This mix points to increased large-trader activity without a broad bullish shift.
Trader LuckSide Crypto said Bitcoin and ADA follow a Wyckoff accumulation pattern and currently sit in Phase D. He linked Bitcoin’s setup to a possible range breakout around September 25.
LuckSide also cited two Bitcoin metrics: long-term holders control 75% of supply, while only 17% moved during the last three months. Bitcoin dominance has also fallen below 60%.
According to LuckSide, the same framework could support an ADA gain of roughly 50% by December if the pattern holds. He also noted that the September 25 timing does not guarantee a breakout.
CLARITY Vote and Cardano Activity Add Market Risks
The Senate plans a September 15 cloture vote on the CLARITY Act, according to LuckSide Crypto. The vote would open debate rather than approve the legislation.
The measure needs 60 votes to advance. Republicans hold 53 Senate seats, while only two Democrats have publicly backed the bill so far. Anonymous traders reportedly wagered more than $1 million on failure.
LuckSide said a failed vote would not end US crypto policy efforts because the SEC and CFTC continue separate work. Still, a delay would remove one September catalyst for the broader market.
Cardano network data also shows a mixed picture. Chainspect recorded about 26,500 transactions on September 4 before activity fell to 19,054 on September 6.
Over the same period, on-chain revenue rose 1.99% to $1,261. Average transaction fees fell 2.42% to $0.06619, contrasting with a separate report that claimed ADA’s DEX volume had tripled.
Traders will also track Cardano network activity, Bitcoin’s market structure, and the September 15 CLARITY Act cloture vote.
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