• Cardano’s price is nearing the descending trendline on Thursday, a breakout would suggest a rally ahead.
• Charles Hoskinson shared new funding details for Cardano in 2026, hinting at ADA buybacks.
• Despite the optimism, mixed sentiment in derivatives markets caps ADA’s upside move.

Cardano (ADA) is approaching the descending trendline, trading at $0.26 as of writing on Thursday, and a potential breakout would suggest an upside move. Charles Hoskinson, founder of Cardano, on Wednesday hinted at a possible buyback mechanism and outlined plans for a new ecosystem funding model expected to roll out in 2026, boosting investors’ sentiment. Traders should be cautious, as despite the improving narrative, mixed signals from the derivatives market continue to cap ADA’s near-term upside momentum.

Cardano founder boosts sentiment

Charles Hoskinson, founder of Cardano, shared a video on YouTube on Wednesday titled “Cardano Funding 2026,” which highlighted a revised plan for ecosystem funding structure aimed at fixing inefficiencies in the current treasury allocation model.

He explained in the video that the network’s next phase will focus on delivering real utility and building a stronger Decentralized applications (dApp) ecosystem across the network. Under the proposed structure, developers and dApp teams could receive stronger incentives to accelerate innovation and adoption across the network. 

The plan also suggests that Cardano’s treasury could begin allocating capital to a portfolio of ecosystem projects, such as Decentralized Finance (DeFi) platforms and other applications. Returns from these investments could be used to purchase ADA in the open market, creating a potential buyback mechanism that supports the native token ADA while funding ecosystem expansion.

These initiatives and plans could strengthen Cardano’s developer activity, ecosystem, and on-chain utility, thereby boosting investors’ confidence in ADA over the long term.

Mixed sentiment caps Cardano’s upside move

Cardano’s derivatives data also shows mixed signals. Cardano futures Open Interest (OI) falls to $410 million on Thursday, having been steadily declining since mid-January and nearing the February 12 level of $407 million. This drop in OI reflects waning investor participation and projects a bearish outlook.

Meanwhile, the funding rates support a bullish thesis. CoinGlass’s OI-Weighted Funding Rate data shows that the number of traders betting that the price of ADA will slide further is lower than those anticipating a price increase. The metric flipped to a positive rate on Wednesday and currently stands at 0.0075% on Thursday, indicating that longs are paying shorts.

This combination suggests indecision among ADA investors and limits the chances of a sustained upside move.

Cardano Price Forecast: ADA could extend gains if it breaks above the descending trendline

Cardano price is trading at $0.26 as of writing on Thursday after recovering over 5% in the last three days. The near-term bias is neutral, with a bearish tilt, as price holds well below the 50-day and 100-day Exponential Moving Averages, which are clustered above $0.29, preserving a broader downtrend. 

A long-standing descending resistance trendline that now caps the market near $0.27–$0.30 continues to reject recovery attempts, while fading volume on recent bounces signals limited buying conviction. 

The Relative Strength Index (RSI) on the daily chart around 44 stays below its midline, and the Moving Average Convergence Divergence (MACD) hovers near zero after losing positive momentum, together reinforcing a lack of sustained upside pressure.

Immediate resistance lies at $0.27 around the trendline break area, followed by the horizontal barrier at $0.29, where prior rallies stalled, and the declining EMAs converge, forming a pivotal cap for any bullish reversal attempt. 

On the downside, initial support emerges at $0.25, with a break lower exposing the horizontal floor at $0.24, which has contained the latest sell-off and represents the last notable daily base before deeper losses. A decisive move beyond either $0.24 or $0.29 would be needed to shift the current neutral-to-bearish configuration into a more directional phase.

(The technical analysis of this story was written with the help of an AI tool.)