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Cardano ($ADA) arose after positive sentiment but will it sustain

The home of the Cardano ($ADA) token has enjoyed a significant bullish rally over the past three days as broader crypto market sentiment improves.

However, it is currently in the fear zone, in contrast to the extreme fear of the previous week. The sentiment correction was timely as it allowed Cardano (ADA) to recover from exposure to its support level.

ADA has been trading in a loudspeaker pattern reinforced by support and resistance. The token touched its support line at $0.93 before registering some gains on Monday. The bulls maintain their momentum and continue to hold the line at press time, with ADA trading at $0.97.

Source: TradingView
Source: TradingView

ADA’s bearish retracement in April began after its March rally retested support at $1.24. Its RSI has registered a bullish momentum towards the neutral zone while OBV has registered some positive flows over the past 3 days. ADA’s Awesome Oscillator crossed the zero line yesterday, confirming a trend change in favor of the bulls.

Cardano (ADA) has also recorded a significant increase in the share of Binance and dYdX funding. This means that the rate at which traders can access its derivatives has improved in line with an uptrend and it reflects growing confidence in the market.