The price of Cardano (ADA) has increased by 3% in the last 24 hours as the cryptocurrency market recovers from a recent downturn.
Let's analyze what is happening in the Cardano (ADA) market and what to expect from the cryptocurrency's price.
Cardano is exiting the descending trend.
The 3% rise in ADA over the last day has pushed the price above the descending channel that held it back from June 11 to June 15. Breaking the upper boundary of the channel signals a potential trend reversal and the beginning of an uptrend.
The Balance of Power (BoP) indicator confirms the revival of growth. At the time of writing, it is positive at 0.33. Values above zero indicate that buyers are in control of the market and pushing the cryptocurrency's price upward.
The bullish sentiment is also maintained among futures traders on ADA, as seen by the positive funding rate of the coin. At the time of publication, it stands at 0.0081%, according to Coinglass. This means that most traders are betting on the altcoin's price increase.
Cardano is testing the level of $0.66
Increased bullish momentum may help the cryptocurrency overcome resistance at the $0.66 level and target $0.73 in the medium term. If buying activity continues to grow, the rally could reach $0.76.
If Cardano buyers change their mood to bearish, the price could drop to $0.62, which would still remain within the previous descending channel.