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Key Takeaways:
- ADA price breaks out of a long-term downtrend, with a 40% rally in sight.
- Whale transactions surged after bullish comments from Charles Hoskinson.
- Rising TVL, DEX volume, and technical indicators support continued momentum.
Cardano’s ADA token is gaining renewed bullish momentum in July, breaking out of a long-term descending channel and sparking renewed investor interest. The rally follows regulatory optimism and a wave of on-chain activity driven by founder Charles Hoskinson’s bullish outlook and growing DeFi traction.
Hoskinson’s Bullish Outlook Spurs Whale Transactions
The recent breakout was bolstered by public comments from Cardano founder Charles Hoskinson. In a clip shared on the Angry Crypto Show, Hoskinson predicted a $10 trillion future for the broader crypto market and positioned U.S.-based blockchain projects like Cardano at the center of this growth. His statements appeared to trigger immediate whale activity.
According to data shared by analyst Ali Martinez, over 137 transactions exceeding $1 million were recorded on the Cardano network within 24 hours of the video going live. This spike in whale activity suggests growing institutional confidence and hints at strategic accumulation ahead of potential upside.
ADA Breaks Past May Highs, Eyes 40% Rally
On the technical front, ADA has decisively broken out of a long-term descending trendline and briefly touched $0.90, surpassing its May high. Although the price has slightly retraced, it continues to consolidate above $0.82. Analysts suggest that maintaining this level could pave the way for a 40% rally toward $1.18. However, if the token fails to hold support, a pullback toward $0.68 remains possible.
The breakout is reinforced by rising market capitalization, which now stands at approximately $29.48 billion, placing ADA firmly in the top-tier of crypto assets by valuation.
DeFi Growth and Technical Indicators Reinforce Bullish Case
Cardano’s ecosystem is also showing strong DeFi recovery. Total value locked (TVL) has surged to $374.54 million, nearly revisiting mid-May highs. Additionally, decentralized exchange (DEX) volume and stablecoin market cap have rebounded, suggesting fresh capital inflow into the Cardano network.
Technically, multiple indicators point to increasing momentum. A golden cross between the 20-day and 50-day EMAs, a rising MACD histogram, and a positive Chaikin Money Flow (CMF) reading all suggest continued bullish pressure. However, with the RSI entering overbought territory, a short-term cooldown may occur before the next leg up.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
