- Cardano’s ADA is recovering from the SEC’s allegations made in early June.
- The token recently reclaimed a crucial level after TradFi showed interest in the crypto industry.
- ADA’s performance has sparked enthusiasm among investors.
Cardano’s ADA is finally showing signs of recovery following the unwarranted pressure it faced from the SEC’s security classification. This resurgence is thanks to TradFi’s burgeoning interest in the crypto industry, which has sparked a wave of optimism within the market.
Having rallied 8% in a single day, the token has continued to surge, gaining an additional 8% to reclaim a crucial level. The recent performance of Cardano’s ADA has infused investors with excitement as they eagerly anticipate a summer bull run.
Still More Juice Left in ADA
On June 21, Cardano’s ADA registered an 8% price gain rallying from $0.24 to $0.28, causing over $1.47 million in short liquidations across ADA futures. With shorts out of the picture, Cardano rallied another 8% from $0.28 to reclaim the crucial $0.3 level on June 22, according to CoinMarketCap data.
Cardano’s recent performance has led to market sentiment flipping from mostly bearish to mostly bullish, according to IntoTheBlock data. While on-chain sentiment remained bearish, exchange and derivatives markets signaled bullish trends.
At press time, sentiment surrounding Cardano’s ADA has turned neutral, coinciding with its pullback to the $0.29 level. Coinglass data reports that open interest for Cardano’s ADA derivatives exceeds $125 million, with a long-to-short ratio of 0.9732. This suggests a slightly bearish sentiment among traders and investors.
Despite what sentiment says, Cardano, as an ecosystem, is still showing steady growth in adoption this month.
According to Cardano Blockchain Insights, Cardano has been adding an average of over 2,400 new crypto wallets daily in June, bringing the total number of Cardano holding addresses to 4.1 million. At press time, Cardano has grown by over 48,000 new addresses in June, bringing the total number of new crypto wallets added this year to 315,643.
On the Flipside
- Cardano recently made a new DeFI TVL all-time high of 507 million ADA.
- Cardano Founder Charles Hoskinson has hinted at a Cardano Summer this year.
- Cardano’s ADA is still 21% down from its June peak of $0.381 and has yet to recover from the SEC’s accusations.
Why This Matters
Cardano has been range bound for the majority of 2023. Recent developments suggest it could break out from its range if it maintains momentum.
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