Cardano price rose for the second consecutive day on Thursday, July 3, as most cryptocurrencies rebounded.
Cardano (ADA) jumped to a high of $0.60, gaining over 17% from its June lows and reaching its highest level since June 18. The move pushed Cardano’s market capitalization above $21 billion.
The rally followed a key development from Fluid Tokens, which conducted the first on-chain transaction proving the Bitcoin (BTC) state on Cardano. In their announcement, the developers noted that this marked the beginning of a Cardano–Bitcoin bridge.
Charles Hoskinson and the Cardano team have long been working on incorporating Bitcoin into the Cardano blockchain, a move they believe could eventually enable trillions of dollars in value to flow through the network.
In line with this goal, Lace, a wallet product built by the Cardano team, completed its first Bitcoin deposit and rolled out a new feature to simplify fee estimation.
One potential benefit of integrating Bitcoin is that it would allow BTC holders to generate yield safely within the Cardano ecosystem. However, critics argue that this capability already exists on other platforms, such as Solv Protocol and Babylon.
Despite the bullish narrative, Cardano still faces considerable challenges. It is frequently labeled a “ghost chain” due to its relatively inactive ecosystem. For example, its DeFi total value locked stands at less than $318 million, and its stablecoin supply has hovered around $31 million for months. These metrics suggest that Cardano is being outpaced by newer networks like Unichain and Sui.
Cardano price technical analysis
The daily chart shows that Cardano price dropped and bottomed at $0.519 in June this year. This was a notable level since it coincided with its lowest point in April.
The coin has formed a rounded top with an upper boundary at $0.863. More recently, ADA has developed a horizontal channel. Together, this price action suggests the formation of an inverse cup-and-handle pattern, with a depth of approximately $0.344.
Currently, Cardano remains below its 50-day and 100-day moving averages, signaling continued bearish control.
As such, a bearish breakout appears more likely in the near term. If the breakdown occurs, the initial target will be $0.519, the lower edge of the cup pattern. A move below that level could open the door to further declines toward $0.50 and below.
Source: https://crypto.news/red-alert-rising-cardano-price-has-formed-a-risky-pattern/