Cardano (ADA) remains around 0.42 USD as on-chain data reveals recovery potential

Cardano price (ADA) is currently holding steady around the $0.42 mark on Tuesday afternoon, after a nearly 5% surge in the previous session. On-chain and derivatives market data are painting an optimistic picture for the bulls, as large whale orders continuously appear, buying pressure dominates, and the funding rate remains positive. Technically, ADA is also receiving the necessary support to continue its recovery, with a target set for the $0.50 area.

On-chain and derivatives data indicate an uptrend

Aggregated data from CryptoQuant continues to reinforce ADA’s positive outlook. In both spot and derivatives markets, large buy orders from whales are becoming more frequent, while indicators show the market is “cooling off.” The dominance of buying pressure in this context is a clear signal foreshadowing a potential recovery.

Beyond whale accumulation, data from the derivatives market also suggest ADA could soon enter a new upward phase. The Coinglass funding rate reflects that the number of traders expecting a price decline has narrowed, while those betting on a bullish scenario are in the majority.

This indicator has turned positive, reaching 0.0014% on Tuesday—a sign that longs are paying shorts. History also shows that whenever the funding rate turns from negative to positive, ADA’s price tends to surge strongly soon after.

Funding ADA funding rate | Source: Coinglass ## Cardano price forecast: ADA bulls eye the $0.50 mark

Cardano’s price found support at the lower boundary of a falling wedge pattern—formed by a series of highs and lows connected by two trendlines—on Saturday, before bouncing 6% over the next two sessions. By Tuesday afternoon, ADA was trading steadily around the $0.42 mark.

If the recovery continues, ADA could extend its move up to the next major resistance area at $0.49. A decisive candle close above this level would open the door for a broader uptrend, targeting the psychological $0.50 mark.

Bi ADA/USDT daily chart | Source: TradingView
On the daily timeframe, the relative strength index (RSI) hit 30 after falling into oversold territory last week and is now ticking upward, signaling cooling selling pressure and initial signs of bearish weakness. The MACD lines are also converging and approaching a bullish crossover, further strengthening expectations for a more sustained recovery.

However, if the upward momentum is rejected, ADA could see a pullback to the lower boundary of the trendline area around $0.39.

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