ADA rebounds as Cardano greenlights $70 million fund.
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Key Takeaways
After six consecutive red daily candles, ADA has rebounded to $0.73, with bullish momentum rising.
The Cardano community approved a $70M fund — its first governance-backed ecosystem investment.
Cardano’s price is testing the top of a descending channel, as a breakout could target $0.84 to $0.93.
After some days of downward pressure, Cardano’s (ADA) price could be gearing up for a bounce.
This development comes after the Cardano community made history by approving the project’s development fund for the first time.
At press time, ADA’s price is $0.73. However, with this fresh development capital, ADA may again target $1.
Here is why.
Cardano Six-Day Drop Reverses
Between July 28 and Aug. 2, Cardano’s price endured a pullback, printing six consecutive red daily candles, and it slid from $0.83 to $0.69.
The drop came as selling pressure intensified shortly after ADA attempted to break higher.
Now, the tide appears to be shifting. Over the past two sessions, ADA has posted back-to-back bullish candles, lifting the price to $0.73.
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Notably, the Chaikin Money Flow (CMF) has held above the zero signal line, signaling that capital inflows never thoroughly dried up despite recent weakness.
This resilience suggests that bears are losing control, and ADA’s price could soon find strong support near $0.55. If this support level holds, the altcoin could retest the resistance at $0.84.
Beyond the technical setup, Cardano’s governance just notched a historic milestone.
The community has approved a $70 million ecosystem fund (96 million ADA) to fuel blockchain development—the first time an official vote has backed such funding.
According to CCN’s findings, 74% of participating voters gave the green light after Input Output (IOHK)—Cardano’s primary development arm—submitted the proposal.
“The Cardano Community has officially voted in support of the IOE funding proposal (with a 73.93% vote) marking a significant milestone in the journey toward community-led delivery and long-term protocol advancement,” Input Output disclosed over the weekend.
Furthermore, the announcement revealed that the approved budget will deliver upgrades across scalability, developer experience, and interoperability.
If improved, this could drive the altcoin’s adoption, potentially driving ADA’s price higher.
ADA Price Analysis: Full Bounce Imminent
Like the daily chart, the 4-hour ADA/USD chart also presented a bullish outlook. As the image below shows, ADA’s price is now testing the upper boundary of the descending channel formed.
This indicates that the altcoin seems ready to break out. Besides that, the Awesome Oscillator (AO) has started forming green histogram bars, suggesting that momentum could switch from bearish to bullish.
Once the AO breaks the zero line, Cardano’s price might rise above the resistance at $0.84. In addition, the Money Flow Index (MFI) is rising, indicating increasing buying pressure.
Should this remain the same, ADA might hit $0.93 in the short term. If demand intensifies, the market value might jump to $1.20.
On the contrary, if the cryptocurrency fails to break above the upper trendline and faces rejection, it could drop to $0.61 near the 0.236 Fibonacci retracement levels.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
