Cardano (ADA) Defies SEC With 9% Rally—Bullish Breakout Gains Steam

SEC resistance? No problem. Cardano just punched through with a 9% surge—proving regulators move slower than blockchain transactions.

Why ADA's rally matters

While the SEC wastes time debating securities classifications, smart money's already voting with wallets. The bounce comes straight off recent lows—traders clearly think the selloff was overdone.

Technicals flashing green

That 9% isn't just dead-cat bounce territory. Volume confirms real buying pressure, and key resistance levels are crumbling faster than a shitcoin's whitepaper promises.

The cynical take

Let's be honest—half these gains are just degens front-running the inevitable 'SEC loses another court case' headline. But hey, profits are profits.

TLDR

• ADA rose 9% to $0.5960 on July 2, bouncing from the critical $0.50 support zone that triggered reversals in February and April
• RSI recovered to 43.12 showing early momentum shift, but remains below neutral 50 threshold needed for sustained bullish validation
• Exchange outflows of $6.02 million indicate accumulation behavior, though muted price response suggests cautious market sentiment
• SEC halted approval of Grayscale’s GDLC fund for further review, creating regulatory uncertainty
• Daily volume reached $1.52 billion, one of the highest figures in recent weeks, but price remained anchored near current levels

Cardano price jumped 9% on July 2 to reach $0.5960, recovering from the $0.50 support level that has historically triggered market reversals. The bounce mirrors previous rebounds from this demand zone in February and April.

The recovery brings ADA back to the upper edge of a six-week falling channel. This shows early bullish intent from buyers defending a key historical support level.

While the broader trend remains bearish on higher timeframes, this local bounce demonstrates buyer interest at critical levels. Bulls must reclaim the $0.60-$0.62 resistance band to shift market structure decisively.

ADA is currently holding steady NEAR $0.58 at the time of writing on Thursday. The price action comes despite renewed regulatory uncertainty from the SEC.

RSI Shows Early Recovery Signs

The RSI has climbed to 43.12, showing early recovery from oversold conditions. Price action has also reclaimed the 0.5 Fibonacci retracement from the late-2024 low to the 2025 high.

However, the RSI remains below the neutral 50 level. A close above this threshold is required to validate bullish momentum and confirm the trend shift.

Volume data shows $1.52 billion in daily turnover on July 2. This represents one of the highest figures in recent weeks for ADA trading activity.

Despite the increased activity, price stayed anchored near $0.54. This suggests market indecision or possible redistribution among traders.

Exchange Outflows Signal Accumulation

ADA recorded a $6.02 million spot net outflow on July 1 according to CoinGlass data. This indicates more tokens were withdrawn from exchanges than deposited during the period.

Exchange outflows are generally interpreted as long-term holders accumulating tokens. This reflects reduced short-term selling pressure in the market.

However, the lack of price follow-through around $0.56 reveals weak immediate demand. The combination of exchange outflows and stagnant price hints at cautious optimism.

The muted price response suggests cautious market sentiment rather than strong conviction from buyers.

Regulatory Uncertainty Returns

The US Securities and Exchange Commission halted its approval of Grayscale’s Digital Large Cap fund for further review. This decision creates renewed regulatory uncertainty for the crypto market.

Despite this regulatory setback, derivatives data shows traders remain optimistic about ADA’s prospects. Bullish bets on ADA have reached their highest level in over a month.

Immediate resistance sits at $0.60-$0.62 for the near term. A daily close above this zone could extend gains toward $0.66 and $0.72.

On the downside, failure to hold $0.52 may invite a retest of $0.48. Deeper support below sits at $0.42 if selling pressure increases.