Cardano (ADA) is gaining momentum: Breaking the bearish pattern, stablecoin on the network reaches a peak

Cardano (ADA) is extending its bullish momentum, maintaining trading around the 0.84 USD mark on Monday afternoon, after strongly bouncing back from a key support zone last week. Positive signals from the funding rate along with the expansion of the stablecoin market are boosting optimistic sentiment. At the same time, technical analysis on the 4-hour chart shows a confirmation of the bullish pattern, implying that ADA still has room to advance further in the short term.

Cardano's derivatives contract reflects bullish sentiment

The OI-Weighted Funding Rate data from Coinglass shows that the number of traders betting on a bearish scenario for Cardano is decreasing, while confidence in a bullish trend is increasingly prevailing.

This indicator has moved into the positive zone since September 2nd and remains at 0.0079% as of Monday. This means that the bulls are willing to pay fees to the bears – a clear signal reflecting the optimistic sentiment in the ADA trading community.

Funding Rate chart of Cardano | Source: CoinglassMeanwhile, according to data from DefiLlama, the market capitalization of stablecoins on Cardano has reached a record high of 40.37 million USD on Sunday. The growth momentum of stablecoins not only indicates more active operations on the network but also serves as a driving force for increasing demand and opening up opportunities to attract new users to the entire ADA ecosystem.

Cardano's stablecoin market capitalization chart | Source: DefiLlama## Cardano Price Forecast: Confirmed bullish breakout

On the 4-hour frame, the price chart shows that ADA broke above a descending parallel channel on Sunday, opening up a slight upward movement shortly after. This pattern has formed from a series of peaks and troughs since August 14, and the upward breakout is tipping the scales in favor of the bulls. By Monday afternoon, ADA was trading around the 0.84 USD level.

If this trend continues, ADA could extend its bullish momentum to the 61.8% Fibonacci retracement level at 0.92 USD. On the same timeframe, the RSI is currently at 58, above the neutral threshold of 50, indicating that bullish momentum is prevailing. At the same time, the MACD indicator has also formed a bullish crossover, further reinforcing the positive outlook.

ADA/USDT chart on the 4-hour timeframe | Source: TradingViewOn the daily timeframe, Cardano successfully tested the 100-day EMA at 0.77 USD on September 1, before recovering 4.19% as of Sunday. By Monday afternoon, ADA was still fluctuating around 0.83 USD. If the daily candle closes above the resistance level of 0.84 USD, the price may continue to break out, heading towards the peak on August 14 at 1.02 USD.

The daily RSI indicator is currently around the neutral level of 50, reflecting the market's hesitant sentiment. To maintain bullish momentum, the RSI needs to clearly break above this level. Meanwhile, the MACD histogram is narrowing in red below the neutral threshold, indicating that selling pressure is gradually weakening.

ADA/USDT daily chart | Source: TradingViewHowever, in the event of a correction, ADA may revisit the 100-day EMA at 0.77 USD.

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