Cardano (ADA) is showing signs of recovery, trading near $0.85 on Friday after retesting its broken trendline support earlier in the week. The network’s governance expansion and improving derivatives metrics are adding to the case for a potential rebound.
Cardano governance expands with Everstake as DRep
On Thursday, Cardano confirmed that Everstake has officially become a Delegated Representative (DRep), further enhancing the project’s on-chain governance structure.
“We’re excited to play an active role in Cardano’s on-chain governance and help shape the future of one of the most decentralized ecosystems in crypto,” Everstake said in a post on X.
As a DRep, Everstake gains direct voting power on key proposals, upgrades, and community initiatives, underscoring Cardano’s growing network participation and decentralization.
derivatives data point to bullish recovery
Funding rate data from Coinglass highlights a shift in trader sentiment. The OI-Weighted Funding Rate turned positive on Tuesday and climbed to 0.0070% by Friday, suggesting that long positions are paying shorts. Historically, such a shift has often preceded strong rallies in ADA price.
technical outlook: ADA steadies near $0.82 support
Cardano recently retested the 61.8% Fibonacci retracement level at $0.82 (August 22) and bounced over 9%. However, gains were not sustained, and ADA has since eased back, hovering around $0.85 on Friday.
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Upside scenario: If the $0.82 support continues to hold, ADA could resume its recovery toward the August 14 high at $1.02. A move above the RSI neutral line (50) on the daily chart would strengthen bullish momentum.
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Downside risk: A daily close below $0.82 could expose the next support at $0.76 (50% retracement).
Market outlook
Cardano’s mix of network governance expansion, positive funding rates, and technical support levels paints a cautiously bullish picture. However, traders will look for confirmation from momentum signals before positioning for a sustained breakout.
