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Cardano (ADA) Price Prediction: Is a Strong Breakthrough Coming After a Signal of Recovery?
Gate news, Cardano (ADA) is currently trying to establish a rise trend on the price chart, but the current market sentiment has not firmly supported long positions. Although the fluctuations of Bitcoin (BTC) at the beginning of this week provided some short-term support, ADA has not recorded stable capital inflows throughout June. On the contrary, selling pressure has dominated most of the time. However, recently ADA seems to be showing some signs of recovery, which has led the market to start anticipating whether a strong breakout is imminent.
1. Common Dilemmas and Macroeconomic Impacts of the Altcoin Market
ADA is not the only one in trouble. The total market capitalization of altcoins has failed to break through the 1.25 trillion dollar mark since February. The latest attempt on June 11 was quickly extinguished due to concerns over escalating tensions in the Middle East geopolitical situation, which led to a wave of selling among altcoin investors. This pullback also caused the price of Bitcoin to temporarily fall below the 100,000 dollar mark, further consolidating the short-term bearish pattern.
Shanzhai coins (especially ADA) generally lack sustainable cash flow, which is becoming a major concern for long positions and long-term investors. The common question facing the market is: Will the cryptocurrency market recover soon? This also makes any rebound of ADA appear particularly fragile.
2. Cardano is beginning to show positive signs in the short term
Despite facing pressure from the macro market, Cardano has started to show some positive signs in the short term. Over the past week, ADA rebounded from the support level of $0.51 and set a higher low of $0.545 - a positive signal indicating that buying pressure is gradually increasing. If this altcoin can break through the local high of $0.594 set last Tuesday, the market structure will be restructured in a more positive direction.
(Source: Trading View)
RSI Indicator: The Relative Strength Index (RSI) has also risen in sync with prices, continually setting new lows in recent days, indicating that dumping pressure is easing. This is an important signal that suggests market sentiment may be shifting.
OBV Indicator: At the same time, the On-Balance Volume (OBV) indicator has slightly rebounded; if this upward momentum continues, it could be an early sign of demand recovery, opening the door for ADA to break through the resistance level from $0.62 to $0.65 in the short term.
Three, Investment Strategies and Risk Warnings
However, for traders considering establishing long positions, it is important to note that the main trend remains downward after a significant drop from $0.73 in early June. Therefore, any buying strategy at this time should be executed flexibly—prioritizing quick profit-taking and clear stop-losses—as these are still counter-trend trades.
This means that although ADA has shown initial signs of recovery, it is still in an overall downtrend. Any short-term rise may face significant resistance and is susceptible to rapid reversal due to market sentiment. Investors should remain highly vigilant and strictly control risks when trading.
Conclusion:
Cardano is at a critical turning point. Despite the entire altcoin market facing challenges of insufficient capital inflow and macroeconomic pressures, ADA itself has begun to show some positive signs of recovery, such as higher lows and improvement in technical indicators. However, as the main trend remains downward, any bullish attempts should be viewed as counter-trend trades and require cautious operation. Whether ADA can achieve a strong breakout will depend on its ability to continuously attract buying support and overcome the current market resistance.