Cardano (ADA), one of the leading cryptocurrencies in the market, has experienced a notable price rebound in recent days. Trading at $0.79, ADA has gained 17% in just the past three days, suggesting that it might be on the path to recovering from the 40% losses it sustained in March. This surge has caught the attention of investors, as it could signal the end of the bear cycle for Cardano and the beginning of a new upward trend. But is this rally sustainable, and can ADA regain its losses from earlier this year?

A Bullish Shift in Cardano’s Momentum

The recent price increase in Cardano is part of a broader market recovery, as positive momentum is pushing the altcoin’s value upward. However, beyond market conditions, certain on-chain indicators and technical signals suggest that ADA could be poised for further growth.

One of the most significant signals of potential recovery is the MVRV Long/Short Difference, which currently sits at -89%. This metric compares the profitability of long-term holders (LTHs) and short-term holders (STHs). In this case, the negative reading indicates that long-term holders are at a near-zero profit point and might be considering selling, especially after their substantial losses during the bear market. On the other hand, short-term holders who have recently purchased ADA are currently in profit.

Such a dynamic often occurs at the tail end of a bear market. As short-term holders sell their positions, new investors typically step in, absorbing the selling pressure. This shift could provide the necessary momentum for ADA to regain its losses and continue its upward trajectory.

Technical Indicators Point to Strength

Supporting the bullish sentiment surrounding Cardano are positive technical indicators, particularly the Moving Average Convergence Divergence (MACD). The MACD is currently showing signs of strengthening bullish momentum, with the histogram displaying rising green bars. This suggests that the market is leaning toward a continued upward trend, and the likelihood of a bearish crossover remains distant. The MACD’s positive signal is a crucial factor for investors looking for confirmation that Cardano’s price has the potential to rise further.

In addition to the MACD, ADA’s price movement is approaching critical resistance levels. The $0.80 resistance is within sight, and if Cardano manages to break through this barrier, it could signal that a sustained recovery is underway.

What’s Next for Cardano’s Price?

With the current bullish momentum, ADA is edging closer to key resistance points. If Cardano can successfully breach the $0.80 mark and flip it into support, it could target the next level of resistance at $0.85. Surpassing $0.85 would set the stage for ADA to potentially reach $0.99, which would mark a significant recovery from its March losses. A full recovery to $1.13, where ADA traded earlier in the year, remains a longer-term goal, but achieving the $0.99 target could be a realistic short-term goal.

However, Cardano’s journey to recovery will not be without challenges. If the price fails to hold above the $0.74 support level, ADA could experience a period of consolidation, fluctuating between the $0.74 and $0.66 range. This scenario would invalidate the current bullish outlook and delay a potential breakout.

The Path Forward: Optimism with Caution

While the signs are optimistic for Cardano, investors should exercise caution and remain vigilant about potential price corrections. The recent rally is largely driven by market conditions, technical indicators, and shifts in investor behavior, particularly the selling pressure from long-term holders. As always with cryptocurrency, volatility remains a concern, and price fluctuations are a part of the game.

Cardano’s recovery appears to be building momentum, but the key to sustained growth lies in whether it can maintain its upward trajectory and establish new support levels at key resistance points. With the current technical indicators favoring bulls, Cardano might indeed be on the cusp of overcoming its March losses—but it’s still a waiting game for many investors.

In conclusion, Cardano’s current rise is a positive sign, but its future price performance will depend on whether it can break through resistance levels and solidify a trend of growth. For those watching ADA’s progress, the next few weeks will be crucial in determining if the bear cycle is truly over.