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With trading volume rising by more than 116 percent over the last day as ADA surpassed the crucial $0.20 level, Cardano has produced one of its best sessions in weeks. Although the asset's bullish sentiment has been rekindled by the increase in activity, the technical picture indicates that the market still faces significant obstacles before a long-term bull run can start.
Cardano hits the bottom
After ADA's June bottom, it spent several weeks constructing a higher-low structure before the breakout. As buyers have gradually taken back control, the token has been able to extend its recovery toward the 100-day moving average and recover the 20-day and 50-day moving averages.
ADA is now directly in a significant resistance area around $0.20, where sellers have frequently shown up throughout 2025, thanks to the most recent rally. The move gains credibility due to the increase in volume. The most recent advance has been accompanied by a sharp increase in spot trading activity across major exchanges, in contrast to earlier recovery attempts that lacked participation.
Over the past day, ADA trading volume on Binance alone has exceeded $334 million, and volume on OKX, Bybit, and Bitget has also increased significantly. Additionally, data on derivatives indicates an improvement in sentiment. Top traders are still net long, with the Binance long-to-short ratio at about 1.83.
Liquidation remain balanced
Simultaneously, 24-hour liquidations were fairly balanced, with about $635,000 in long liquidations compared to $3.28 million in shorts, indicating that a significant number of bearish positions were driven out of the market by the rally. From a technical standpoint, ADA is getting close to a turning point.
Both the 20-day and 50-day moving averages have been successfully recovered by the price; however, the 100-day moving average, which is located between $0.197 and $0.20, is now acting as immediate resistance. A convincing daily close above that level would represent the strongest bullish signal Cardano has produced in months and could open the door for a move toward the 200-day moving average around $0.26.
Momentum indicators bolster the improving outlook. Strong buying pressure is evident in the RSI's rise above 70. Even though that puts ADA in overbought territory, strong trends and rising volume can keep RSI readings elevated for extended periods of time.
Cardano's recovery story is definitely strengthened by the recent breakout, but it would still be premature to declare that a full bull run has begun. Bulls are back on track, volume is increasing, and market participation has significantly improved. Demonstrating their ability to turn the $0.20 resistance area into support is the next step.
U.Today Editorial Team
Dan Burgin
