On-chain data shows retail buyers returning to Cardano after a 31% weekly rally, but governance tensions and resistance near $0.22 test the recovery's staying power.
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Cardano adds 14,783 wallets as ADA rebounds 31% from multiyear low
On-chain data shows retail buyers returning to Cardano after a 31% weekly rally, but governance tensions and resistance near $0.22 test the recovery's staying power.
Cardano added 14,783 non-empty wallets after its June 23 bottom near $0.14, with ADA climbing 31% to $0.199 by July 5 before settling near $0.188, Santiment data shows.
"The wallet uptick suggests some retail buyers returned once prices stabilized," Santiment said in its analysis, noting that whale accumulation data already showed large holders adding ADA even as network activity slowed.
Derivatives open interest reached $515 million on July 5, the highest since late May, before moderating to $472 million on July 6, Coinglass data shows. Funding rates flipped positive at 0.0080%, indicating long-position holders are compensating shorts — a typically bullish structure. However, the long-to-short ratio stood at 0.68, with more traders positioned for downside.
ADA faces its next test at an upcoming governance vote. Founder Charles Hoskinson recently opened a review auditing thousands of decentralized organizations tied to Cardano's treasury system, following a canceled 2026 summit and ongoing funding disputes. The Leios scalability upgrade remains on schedule for mainnet deployment later this year.
Resistance Levels Cap the Rally
ADA recaptured the 50-day exponential moving average at $0.186, which now serves as near-term support. The Relative Strength Index sits near 61, leaving room before overbought territory. Initial resistance stands at the 38.2% Fibonacci retracement level of $0.195, with a significant barrier between $0.213 and $0.219 incorporating the 100-day EMA and a descending trendline breakout point. ADA remains well below the 200-day EMA at $0.289.
Governance Friction Weighs on Sentiment
The rebound has not resolved Cardano's internal tensions. Hoskinson's DAO audit follows weeks of heavy selling triggered by failed treasury funding votes and his own warnings about strain on the project. The new wallets face a real test at the next governance vote, Santiment said. If holders stay put instead of exiting at the first sign of trouble, June's fear will look more like capitulation than lasting damage.
This article is for informational purposes only and does not constitute investment advice.
[1] Cardano: Buyers Return After a 31% Weekly Rebound[2] Cardano Adds 14,783 Wallets as ADA Rallies Near 33% in a Week[3] Collateral, not yield, will decide which stablecoins win[4] Cardano (ADA) Climbs 31% Off Multi-Year Lows — Is the Rally Sustainable? - Blockonomi[5] Where is Cardano heading? - FXStreet
