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HomeCrypto NewsAnalysisCardano Eyes Bullish Comeback Amid New Institutional Talks

Cardano Eyes Bullish Comeback Amid New Institutional Talks

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Cardano (ADA) has broken a local trendline and is eyeing a recovery above $0.72. Growing institutional interest and rising open interest in derivatives suggest a potential breakout to $0.837.

As altcoins gradually regain momentum, Cardano appears poised for a bullish comeback this week. On Wednesday, ADA gained nearly 1%, triggering a trendline breakout on the lower time frames. Will this breakout help Cardano re-establish a bullish trend?

Cardano Price Analysis

On the 4-hour chart, Cardano shows signs of a bullish move after previously failing to sustain above the $0.837 resistance level. Following multiple peaks formed last month, ADA dropped nearly 10% last week.

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Cardano price Chart
Cardano Price Chart

The decline stabilized just above the $0.648 support level, with possible reinforcement from the psychological $0.65 mark. With a short-term recovery of nearly 2% this week, Cardano has broken above a local resistance trendline formed by lower highs during the recent pullback.

Currently, ADA is testing the 50-period EMA at $0.70, aiming for a continued recovery. However, the 100- and 200-period EMAs near $0.72 serve as the next significant resistance zone. Thus, despite the trendline breakout, ADA still faces several key resistance levels.

Despite these overhead barriers, the RSI reflects growing bullish momentum as it moves above the midpoint. If Cardano manages to break through the $0.72 level, a rally toward the $0.837 resistance becomes more likely.

Conversely, the key support level remains at $0.648, followed by a secondary support level around $0.60.

CEO-Level Meeting Between Cardano Foundation and Franklin Templeton

Adding to the bullish sentiment, Frederick Gregaard, CEO of the Cardano Foundation, recently met with Jenny Johnson, CEO of global investment firm Franklin Templeton, which manages $1.6 trillion in assets.

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The Cardano community reacted positively to the news, viewing it as a strong signal of institutional engagement.

Furthermore, Gregaard and the Cardano Foundation’s CLO will travel to Washington, D.C., in the coming week to collaborate with U.S. policymakers on developing blockchain-related risk frameworks.

This initiative may help position Cardano as a preferred platform for institutional blockchain projects.

Sentiment Heightened as Cardano Prepares for Bullish Reversal

According to Coinglass, interest in Cardano among derivatives traders has surged, evidenced by a 2.5% increase in open interest, now totaling $845.67 million. Additionally, the funding rate flipped back to positive territory, rising to 0.0084% after a brief dip.

However, the long-to-short ratio over the past 24 hours remains slightly bearish at 0.1969, indicating a minor uptick in short positions. This aligns with substantial long liquidations totaling $805,000, while short liquidations were relatively modest at $154,000.

Cardano Derivatives
Cardano Derivatives

DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

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Albert Brown
Albert Brownhttps://thecryptobasic.com/
Albert Brown is a cryptocurrency investor and journalist who has been in the nascent space since 2017. His love and passion for technological innovations made him delve deeper into the world of blockchain and cryptocurrencies. As a journalist, Brown has written on several crypto-related topics that have been referenced by popular industry players like Tyler Winklevoss, Binance CZ, etc.

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