Cardano prices have recorded a 3% increase in the last 24 hours, trading higher as the wider crypto market rebounds from the recent lows.
Crypto’s total market capitalization is rising more than 2% today, with major Altcoins like the ADA gaining momentum. As bullish sentiment gradually returns to the entire market, the ADA is poised to maintain the rally in the short term.
Cardano is coming out of the downtrend
A 3% rebound over the past day pushed prices above the downward channel, which kept prices on the downward trend between June 11th and 15th.
This pattern appears when the price of an asset forms a lower highest and lower lowest within two parallel downward trend lines, indicating a general bearish trend. When the asset’s price exceeds the channel’s cap, it marks the beginning of a potential trend and bullish momentum.
Measurements from the ADA’s Balance of Power (BOP) confirm a revival in bullish momentum. At the time of writing, this indicator is positive at 0.33.
The BOP indicator helps measure the strength of buyers and sellers in the market and identify changes in momentum. If that value is positive, buyers are controlling the market and driving new prices up.
Furthermore, this bullish sentiment persists among ADA futures traders, which are reflected in the positive funding rate of the coin. At press, this is 0.0081% per Coinglass data.
Funding rates are periodic payments between traders in the perpetual futures market to line up contract prices with spot prices. A positive funding rate means that long positions are paying for short stories, indicating that bullish sentiment dominates and that most ADA traders expect prices to rise.
Cardano faces key tests for $0.66
The ADA’s pass to $1 remains uncertain, but strengthening the bullish momentum allowed the coin to surpass resistance at $0.66, allowing it to target $0.73 in the medium term.
As buy-side pressure continues to increase at that level, the rally may be extended to $0.76.
However, a bearish shift in emotions among Cardano buyers could push the price back to $0.62.
Disclaimer
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