was priced above a crucial support level around $0.30 on the daily chart. A potential recovery could push its price above the $0.39 resistance level.However, a recent double bottom at the $0.31 price level suggests that Cardano may have bottomed out and could be positioned for gains over 70% if the altcoin market rallies when the Federal Reserve cuts interest rates in mid-September.Traders might consider setting entry points around the $0.30 range.
The $0.30 price zone has been tested three times, with the August 5th candle briefly breaking below the lower trendline.In addition to the technical setup, Cardano saw a 9% price increase following the deployment of the Artificial Superintelligence Alliance token on its blockchain. Open interest in ADA remains strong, showing an uptrend on the higher timeframes, which further supports the outlook for higher prices.
Additionally, green funding rates reinforce the potential for a Cardano price reversal, particularly as altcoins as a whole seem primed for a bullish move.As AI-based cryptocurrencies gain more traction in the market, FET’s presence on the Cardano blockchain could positively influence ADA’s price over the long term.The deployment of FET has also boosted activity on Cardano’s blockchain, with ADA’s active addresses reaching a five-month high.
Bitcoin remains the primary driver of most major cryptocurrencies, including ADA, and a rise in BTC’s price is likely to trigger a similar surge in Cardano.If this trend continues, ADA could approach its historical correlation peak of 0.96, especially as development on its blockchain accelerates.Lennox is a professional financial market analyst who's enthusiastic about blockchain, cryptos, and web3. He started blogging about cryptos back in 2019 and has since never looked back.