Cardano, which plummeted 40% last month, breaks $0.15 - is it making a full-scale trend reversal?

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

▲ Cardano (ADA)/ChatGPT generated image ©

Cardano (ADA), which saw a sharp decline last month, causing investor concern, has begun a full-scale trend reversal, driven by a recovery in retail investor demand and positive signals from the derivatives market.

According to investment media FXStreet on July 2 (local time), Cardano's price continued its steady recovery, rebounding 6% the previous day and surpassing the $0.1500 mark today. Cardano, which had plummeted nearly 40% last month due to founder Charles Hoskinson's announcement of a social media hiatus and the theft of 16 million ADA from the ecosystem project SecondFi, quickly reversed its downtrend in conjunction with the short-term recovery 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's futures trading volume increased by over 4% in 24 hours to $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, expecting further upside and paying a premium.

Currently, Cardano is solidifying a short-term recovery trend by breaking above the 50-period Exponential Moving Average (EMA) of $0.1501 on the 4-hour chart. However, it remains below the 200-period EMA of $0.1726, technically indicating a short-term rebound occurring while selling pressure generally dominates. The price is rising towards the 50% Fibonacci retracement level of the recent downward wave at $0.1620, and if it breaks this resistance, it could sequentially 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 and approaching the overbought zone. At the same time, the Moving Average Convergence Divergence (MACD) is maintaining a positive slope above the signal line and expanding its histogram, suggesting that upward momentum is strongly at play. On the other hand, downside support levels are formed at $0.1501, where the 50-period EMA is located, and the 23.6% Fibonacci level of $0.1289, and if selling pressure resumes, a retreat to $0.1382 and the psychological support level of $0.1000 cannot be ruled out.

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