Last month, Cardano’s ADA value collapsed below $0.14, the lowest level since the end of 2020. At the same time, its market capitalization briefly fell to nearly $5 billion, temporarily leaving the asset outside the top 20 cryptocurrency clubs.
However, the bulls managed to stop the free fall and even make an impressive comeback. Here’s what happened and the potential catalysts behind the resurgence.
ADA Green Week
As of press time, the token is worth around $0.17, which represents a 17% increase over the past seven days. Perhaps the most obvious reason that pushed ADA higher was the broader market’s recovery following news of de-escalation from the Middle East.
Bitcoin (BTC) rose to $62,000, while Ethereum (ETH) rose to over $1,700 amid… Reports Iran and the United States are scheduled to hold the next round of direct talks in the third week of July after the funeral of Supreme Leader Ali Khamenei.
Another catalyst could be the excitement surrounding the Cardano upgrade The decision It will be launched on July 6. Specifically, this is the first phase of the RealFi Testnet, which is described as the project’s “first public step toward the next generation of stablecoin infrastructure.”
“The clearest cryptocurrency success story has scaled as money. But not as capital. Hundreds of billions of dollars are sitting idle in stablecoins: no interest. No impact on the real economy. We believe this is a problem worth solving — and the testnet is where we start. During the first phase, participants can explore the platform, use its core features, and share feedback that will directly shape the protocol. This is collaborative infrastructure building at large, and we want you to participate,” it reads.
Speaking about the upcoming efforts, it was Cardano founder, Charles Hoskinson, who Named It is the “largest upgrade” in the project’s history.
Many analysts pointed to ADA’s rebound, saying it still has more fuel for further gains. User He claimed The token is “on fire” and is expected to be pumped in the short term to $0.20, while Nihal anticipation A jump to $0.23, provided the price remains above $0.16.
Not so fast
ADA’s recovery should not be viewed as the guaranteed start of a new bull run, as the cryptocurrency market is still quite unstable and vulnerable to another sharp pullback.
The asset’s Relative Strength Index (RSI) reinforces the bearish outlook. The technical analysis tool, which ranges from 0 to 100, has risen above 70, indicating that ADA is overbought and preparing for a possible correction. Conversely, ratios below 30 are considered buying opportunities.
this post Why did Cardano (ADA) price rise by 15% in a week? appeared first on CryptoPotato.
