Cardano (ADA) Surges 7% as Geopolitical Calm Boosts Crypto Markets

Cardano (ADA), a prominent smart contract platform, has experienced significant selling pressure over the past few weeks, pushing its price close to the psychological support level of $0.50. However, on June 24, 2025, ADA saw a sharp rebound, gaining nearly 5% in a single day. This unexpected surge has garnered the attention of both traders and long-term investors, sparking questions about whether Cardano is finally recovering or if this is merely a temporary relief rally.

The recent price surge in Cardano appears to be driven more by geopolitical developments than by technical factors alone. A sense of calm returned to global markets after U.S. President Donald Trump announced via Truth Social that he had brokered a ceasefire between Israel and Iran, effectively ending the 12-day conflict. This diplomatic breakthrough sparked a sharp rally across major cryptocurrencies, including Cardano, as investor sentiment turned risk-on. ADA's nearly 7% jump on June 24 reflects a broader relief rally across digital assets, as traders moved back into volatile markets amid hopes of de-escalation in the Middle East.

While this bounce is fundamentally news-driven, it also aligns with ADA's technical rebound from key support levels, creating a short-term bullish setup. However, unless this geopolitical calm sustains and is supported by volume, the move could remain limited in scope. After a prolonged downtrend, Cardano (ADA) price has shown its first signs of life—bouncing nearly 7% to $0.58613 on June 24, 2025. The daily chart reveals a bullish Heikin Ashi candle with increasing body size, indicating growing buyer momentum. This recovery comes after ADA touched a critical support zone near $0.50, a level previously tested in March. But the question remains—is this a dead cat bounce or the beginning of a new rally?

Relative Strength Index (RSI) on the daily chart is currently at 37.01, climbing from an oversold region (sub-30 zone) earlier this week. This uptick signals that bearish exhaustion may have occurred, and a potential bullish reversal is brewing. The RSI is also beginning to diverge upward from its moving average, which adds to the reversal narrative. Heikin Ashi candles show a potential trend reversal with two consecutive green candles and no lower shadows—a classic short-term bullish signal.

Cardano price is now hovering just below the pivot resistance level at $0.59047, which is acting as immediate resistance. A confirmed breakout above this level could open the path toward the next Fibonacci retracement target at $0.63. Here’s a quick breakdown of levels: Immediate Resistance: $0.59047, Next Target: $0.63, Strong Resistance Zone: $0.70, Support: $0.50, Major Breakdown Support: $0.42. If ADA price breaks above $0.59047 and moves to $0.63, that’s 7.5% upside from current levels.

While the RSI is recovering and candles are turning green, we must consider the larger context. ADA remains below the 50-day EMA, which generally confirms that broader market sentiment is still bearish. A breakout above $0.63–$0.65 would flip the structure bullish on a higher time frame. Until then, we’re in rebound territory—but not a confirmed trend reversal. The current 4.65% daily jump in ADA is significant—but it’s not enough to call this a full-blown trend reversal yet. The RSI recovery, Heikin Ashi flip, and bounce from strong support at $0.50 suggest a short-term rally to $0.63–$0.65 is possible if volume continues.

However, unless ADA reclaims $0.70 and holds above it, the larger bear structure remains in play. Traders should watch for confirmation via volume and a decisive close above $0.60. Cardano is showing early signs of strength, but it needs to break and sustain above $0.60 and $0.63 to escape the downtrend. If successful, the next stop could be $0.70+. If rejected, a retest of $0.50 or even $0.42 isn’t off the table.