Cardano (ADA) signals bounce back when buying power reaches the highest peak in a month.

The price of Cardano (ADA) is currently holding steady around $0.58 on Thursday morning, after bouncing back nearly 8% in the previous trading session. Notably, this recovery comes despite a resurgence of legal concerns, as the U.S. Securities and Exchange Commission (SEC) unexpectedly paused the approval process for Grayscale's Digital Large Cap (GDLC) fund for further review. Nevertheless, data from the derivatives market still reflects a positive sentiment among investors, as the long positions of (Long) ADA have climbed to their highest level in over a month, indicating that expectations for a continued upward trend remain intact.

SEC temporarily halts the approval of Grayscale's GDLC just one day after its passage

On Wednesday, the U.S. Securities and Exchange Commission (SEC) unexpectedly announced it would reconsider its decision to approve Grayscale's proposal just one day after giving the green light for the GDLC fund.

This letter is to inform you that, according to Rule 431 in the Practice Regulations of the Commission (17 CFR 201.431), the SEC will conduct a review of authorized actions. According to section (e) of this regulation, the decision issued on July 1, 2025, will be postponed until further notice," quoted from the official text of the SEC.

The SEC also stated that it will timely inform the New York Stock Exchange (NYSE) about "any next steps that the Commission may take" related to this decision.

Grayscale had previously proposed converting the Digital Large Cap Fund (GDLC) into a spot ETF, including a portfolio of leading digital assets such as Bitcoin (79.90%), Ethereum (11.32%), Ripple (4.99%), Solana (3.01%), and Cardano (0.78%), with total assets under management reaching nearly 774 million USD.

Despite the legal instability once again overshadowing the market, major cryptocurrencies have maintained stability during Wednesday's session. This momentum is partly fueled by optimistic sentiment following U.S. President Donald Trump's announcement of a new trade agreement with Vietnam. Among them, Cardano stands out with a nearly 8% increase for the day, holding around the $0.58 mark during early trading in the Asian market on Thursday.

Cardano derivative data shows bullish sentiment

Data from the derivatives market shows that confidence in the bullish trend of ADA is being strongly reinforced. Specifically, the Long/Short ratio of ADA on the Coinglass platform reached 1.10 on Thursday - the highest level in over a month. The fact that this ratio exceeds 1 indicates that the majority of traders are leaning towards a bullish scenario, betting on the possibility that ADA will continue to rise in the near future.

Long/Short ratio chart of ADA | Source: CoinglassMeanwhile, the total open interest (OI) of ADA also recorded an impressive increase of 7.04% in the last 24 hours, reaching 861.53 million USD. The rise in OI reflects new capital flowing into the market, demonstrating the increasingly clear bullish sentiment among investors regarding the prospects of Cardano.

Cardano Derivative Data Chart | Source: Coinglass## Cardano Price Forecast: ADA is approaching the breakout zone

The price of Cardano (ADA) is currently moving within a "descending wedge" pattern, defined by two converging trend lines connecting recent highs and lows. After bouncing back nearly 8% on Wednesday, ADA is now approaching the important resistance level at $0.58 as of Thursday (.

If it can break through this resistance zone, ADA may extend its upward momentum to the upper edge of the descending wedge pattern. Moreover, a decisive breakout from the pattern could drive the price straight to the $0.73 mark – the peak established on June 11.

![])https://img-cdn.gateio.im/webp-social/moments-fcba625855bec36b676fc4ca79f6d585.webp(Daily ADA/USDT chart | Source: TradingViewThe relative strength index )RSI( on the daily timeframe is currently at 45 and is trending upwards, approaching the neutral level of 50 – a signal indicating that selling pressure is gradually weakening. To maintain the upward trend, the RSI needs to break above this neutral zone.

In addition, the MACD indicator on the daily chart has recorded a bullish crossover this past Sunday, along with the expansion of histogram bars above the neutral line – indicating that bullish momentum is being reinforced and an upward trend may be forming.

However, in a negative scenario, if ADA cannot maintain its upward momentum and reverses for a correction, the nearest support area will be around $0.49.

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