Cardano (ADA) is once again clawing back losses after falling to as low as $0.15. As the recovery gains momentum, the funding rate in the futures market has turned positive, signaling renewed bullish sentiment among traders. However, the recovery appears to be driven by much more than just price action, with underlying network and market fundamentals also showing signs of strength.
Cardano (ADA) makes stunning comeback after horrific June
After closing a horrific June, Cardano has started July with some bullish momentum. Cardano entered the month of June on a wrong note, as it lost a major support level at $0.23. As the month progressed, the bears took the upper hand and tanked the prices till it reached the monthly low of $0.15.
In June, the token lost nearly 35 percent of its value during the downturn. However, gone are the days when the bears dominated. Now the bulls have returned, and the price has recovered and is up 40 percent in the first week of this month. ADA tested the 50-day moving average a few times, but it was not able to cross above this line.
ADA funding rate skews positive as price recovers
It can’t be seen as a sign of weakness, considering ADA has already recovered after falling to as low as $0.15. The futures market is also showing renewed strength, with the OI-weighted funding rate turning positive and remaining above zero throughout the first week of July.
This suggests that long traders are once again willing to pay a premium to maintain their positions, reflecting improving bullish sentiment. The sustained positive funding rate, coupled with the price recovery, indicates that market participants are increasingly expecting further upside.
As long as the funding rate remains at healthy levels without becoming excessively high, it points to growing confidence rather than speculative overheating, providing a supportive backdrop for ADA’s continued recovery.
ADA’s price action is not the full story
But the growth in price is just a part of the full story. The Cardano ecosystem has more than just the price action to offer. The addition of 14,783 new non-empty wallets is generally a positive signal for the Cardano ecosystem because it indicates that more wallets are holding ADA rather than remaining empty. This often reflects new users joining the network, existing holders creating additional wallets for staking or security, or investors accumulating ADA.
For the ecosystem, this growth suggests expanding participation and a broader distribution of the token. A larger base of ADA holders can strengthen network decentralization, increase staking participation, and support on-chain activity over time. It also signals sustained interest in Cardano beyond short-term price movements, as users are choosing to hold the asset instead of simply trading it.
