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.
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.
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.
JUST IN: Frederik Gregaard, CEO of the Cardano Foundation, met with Jenny Johnson, CEO of Franklin Templeton — global investment manager of $1.6T 🔥
They discussed digital assets, public blockchain infrastructure, and how Franklin Templeton is already running Cardano nodes. pic.twitter.com/iPA3uoYo4p
— Cardanians (CRDN) (@Cardanians_io) June 4, 2025
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.
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