Cardano, which plummeted 40% last month, breaks $0.15 and embarks on a full-scale trend reversal?

Cardano (ADA) Price Prediction: Rebound Extends Amidst Retail Investor Optimism

▲ Cardano (ADA)/ChatGPT generated image ©

Cardano (ADA), which had caused investor concerns with a sharp decline last month, has begun a full-fledged trend reversal, driven by recovering demand from retail investors and positive signals from the derivatives market.

According to investment specialized media FXStreet on July 2 (local time), Cardano's price continued its gradual recovery, rising 6% the previous day and surpassing the $0.1500 mark today. Cardano, which plummeted nearly 40% last month due to founder Charles Hoskinson's announcement to suspend social media activity and the theft of 16 million ADA from the ecosystem project SecondFi, quickly turned bullish in conjunction with the short-term recovery trend of the overall cryptocurrency market triggered by Kevin Warsh's remarks.

Key indicators in the derivatives market also support this optimism. According to CoinGlass data, Cardano futures trading volume increased by over 4% in 24 hours, reaching $535.33 million, reflecting high investor interest. Open Interest slightly increased by 2% to $374.58 million, indicating relatively stable position building, while the funding rate recorded a positive value of 0.0093%, proving an increase in traders willing to take long positions and pay a premium, anticipating further upward movement.

Currently, Cardano is consolidating its short-term recovery trend by breaking above the 50-period Exponential Moving Average (EMA) of $0.1501 on the 4-hour chart. However, it still remains below the 200-period EMA of $0.1726, technically indicating a short-term rebound in a market where selling pressure generally prevails. The price is rising towards the 50% retracement level of the recent downward wave at $0.1620, and if it surpasses this resistance level, it could successively target the 200-period EMA and the 78.6% Fibonacci retracement level at $0.1774.

Auxiliary indicators also point to strong upward momentum. The Relative Strength Index (RSI) on the 4-hour chart recorded 66, showing increased buying pressure approaching the overbought zone. Simultaneously, the Moving Average Convergence Divergence (MACD) is also maintaining a positive slope above the signal line and expanding its histogram, suggesting strong upward momentum. Conversely, downside support levels are formed at $0.1501, where the 50-period EMA is located, and the 23.6% Fibonacci level at $0.1289. If selling pressure resumes, a retreat to $0.1382 and the psychological support level of $0.1000 cannot be ruled out.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*