- Cardano rebounds 7% after weeks of sustained losses
- Bitcoin strength fuels renewed optimism across broader altcoin market
- Rising volume and support levels hint at potential continuation
Cardano staged a sharp comeback within 24 hours, rising 7% after weeks of sustained losses. The move followed a difficult month that saw ADA shed more than 22% of its value. Consequently, the sudden rebound has shifted short term sentiment across the market. During the recent session, ADA climbed from a low of $0.2546 to a peak of $0.271 as per CoinMarketCap data. Although the token later eased slightly, it continued trading near $0.2693. That level still reflects solid daily gains and renewed buyer activity.
The rally unfolded as Bitcoin pushed decisively higher. Bitcoin advanced from around $62,000 to $66,000 and broke above the $65,000 resistance level. As a result, capital rotated back into altcoins, lifting assets that had recently struggled. Cardano’s recovery appears closely tied to this broader market shift. Historically, ADA often mirrors Bitcoin’s direction due to strong correlation. Therefore, sustained strength in Bitcoin could support further upside for Cardano.
However, traders remain cautious after the prolonged February decline. A 7% jump after a steep drop sometimes raises concerns of a short lived rebound. Market participants are now watching whether momentum builds or fades.
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Volume and Derivatives Data Point to Growing Interest
Trading activity offers insight into the strength behind the bounce. Cardano’s 24 hour trading volume rose 0.94% to $413.38 million. This increase signals that buyers participated actively in the upward move. At the same time, open interest remains a key factor. Earlier in the downturn, open interest fell below $500 million as traders reduced exposure. That decline reflected a cautious stance during heightened volatility.
Source: Tradingview
If open interest rebounds alongside price, confidence may strengthen. Moreover, steady volume growth would indicate sustained engagement rather than speculative spikes. Support levels also matter in assessing continuation. The $0.26 region now acts as immediate support. Holding above that threshold could reinforce the short term recovery structure.
Beyond that, the $0.28 to $0.30 zone stands as an important reference area. Cardano traded within that range before mid February’s sharp slide. A return to that band would signal deeper stabilization. Improved appetite for risk across the crypto sector has helped ADA recover. Nevertheless, broader conditions will determine whether this rebound extends into a larger surge. Cardano’s 7% rally marks a notable shift after a brutal selloff. Continued strength in Bitcoin, rising open interest, and firm support above $0.26 will likely determine whether ADA builds toward a stronger recovery phase.
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