ADA, the native cryptocurrency of the Cardano blockchain, bounced 7.53% during Monday’s US market session, trading at $0.58. The buying pressure followed a broader market uptick as Iran and Israel are likely to cease fire in the next 24 hours. However, the ADA shows an upswing from a multi-month support level at $0.51, signaling a potential pivot point for a major reversal. Is a rally to $0.70 close?
Israel-Iran Ceasefire Sparks Crypto Market Optimism
On Monday, June 23, the cryptocurrency market experienced a sudden surge in buying pressure as tensions in the Middle East eased. According to a truth post from US President Donald Trump, Israel and Iran have agreed to a complete and total ceasefire in the next 24 hours following the completion of final military operations.
The ceasefire will commence in the next 6 hours, starting with Iran and then followed by Israel after 12 hours. Both sides have committed to remaining peaceful and respectful during the ceasefire, which would potentially end “The 12-Day War.”
The positive response from the crypto market pushed the Bitcoin price above $105,000, marking a renewed bullish reversal in most major altcoins, including ADA.
Cardano Price Bounced From A Major Support
The Cardano price daily chart shows its recent bullish reversal emerged from a long-awaited horizontal support at $0.51. Since mid-November 2024, this support level has served as a major accumulation zone for ADA buyers, resulting in a rally that extended from 70% to 150%.
If history repeats, the Cardano price is likely to bounce another 8% to challenge a dynamic resistance trendline at $0.60. Over the past four months, this downswing trendline has served as dynamic resistance, maintaining a sell-the-bounce sentiment in the market.
A potential breakout will signal an early sign of trend reversal and a boost in bullish momentum. Furthermore, the ADA price is poised to reclaim the daily exponential moving averages (20, 50, 100, and 200) as a signal for recovering market sentiment.
The post-breakout rally could drive the asset to $0.73, followed by $0.86.
On the contrary, if sellers continue to defend the overhead trendline, the coin price will prolong its correction.
