During the recent recovery of the market post the crash due to Trump’s tariffs, Cardano [ADA] demonstrated a significant surge.
Within this timeframe, Cardano surged from $0.50 to a peak of $0.82, representing a 64% increase. This surge enabled ADA to reclaim its crucial support level of $0.7.
Currently, Cardano is trading at $0.73, showcasing a 7.17% rise on the daily charts. Prior to this recovery, ADA had experienced a downward trend, dropping by 21.93% on a weekly basis.
Despite the fluctuations, it is evident that there is a high demand for this altcoin among investors, who have maintained a positive outlook.
The key query that emerges is whether ADA can sustain these recent gains and continue its upward trajectory.
Prospects of Cardano Maintaining Recent Progress
According to analysis by CryptoCrypto, Cardano is currently encountering notable buying pressure, indicating a growing upward momentum.
The surge in buying pressure is exemplified by the Chaikin Money Flow (CMF) rising from negative levels to 0.11 over the past day, showcasing a dominance of buying activity and hinting at increased accumulation.
Furthermore, the 90-day Adjusted RVT for Cardano has decreased to 1.39 at present, indicating a higher volume of ADA being transacted on-chain concerning its market cap, which signifies a bullish sentiment.
This decline in the Adjusted RVT underscores the elevated activity within the Cardano network, suggesting a rise in adoption and accumulation.
Additional confirmation of bullish sentiment and increased accumulation is reflected in the diminishing NVT ratio, which has fallen to 1.4.
When the NVT ratio declines alongside an RVT above 1 and below 2, it indicates an escalating adoption rate and heightened network activity.
Lastly, the Funding Rate of Cardano has recently turned positive after previously dropping into negative territory post the market crash.
This turnaround in the Funding Rate implies a rising bullishness among investors as they are now willing to pay a premium to hold their trades, anticipating a rebound in prices.
Future Outlook for ADA
Given the ongoing strong upward momentum of Cardano, a potential uptrend continuation could be confirmed once the Stoch RSI undergoes a crossover.
Hence, with ADA firmly maintaining levels above $0.7, the next major resistance lies around $0.8. Sustaining the upward trend seen recently could lead the altcoin to surpass this level and aim for $0.96.
Nevertheless, considering the high volatility experienced by the altcoin, a correction might lead ADA to retrace towards its crucial support level of $0.701.