[DigitalToday reporter Yoonseo Lee] Cardano has risen for four straight trading sessions and has gained more than 32 percent on the week.

U.Today, a blockchain outlet, reported on July 5 (local time) that Cardano showed the strongest momentum based on seven-day returns among the top 20 cryptocurrencies by market value.

The rebound is drawing attention because both price recovery and increased network participation appeared together. On-chain analytics firm Santiment pointed out that Cardano's price action decoupled from other assets after a spread of strong fear last month deepened divisions within the community. "Cardano is showing signs of coming back to life again after passing peak fear," it said.

Based on price action alone, the rebound was larger. ADA slid to $0.138 on June 25, its lowest level since December 2020, but later rose to around $0.189, a 37 percent rebound from the low. It also touched the $0.20 level intraday for the first time in about a month.

Network metrics also pointed in the same direction. Since the low on June 23, Cardano added 14,783 ADA wallets with non-zero balances. "Retail investor support was one of ADA's strengths," Santiment said, adding that the recent increase in holders could show the possibility of restoring crowd confidence.

In the market, some interpret the earlier fear phase as having turned into a buying opportunity. Traders pushed the price up to around $0.20, but as of July 5 Cardano has again confirmed resistance in that zone. ADA rose 0.26 percent over the past 24 hours, but gave back part of its daily gain.

In the short term, whether it breaks above $0.20 is seen as the key variable. If it clears that level, Cardano could set the next target at $0.27, near the 200-day moving average on the daily chart. If profit-taking intensifies, the support level was presented as $0.138.

On the network side, there was additional positive news. The Cardano camp met all preparation requirements needed to advance the Van Lotham hard fork and secured an approval signal. An update released on July 3 by Intersect put overall readiness at 83 percent.

As a result, Cardano's short-term direction is expected to depend on whether the price rebound can settle above $0.20 and whether the recent rise in the number of wallets leads to further expansion. Santiment said that if the increase in holders continues and ADA regains $0.20, it could show that last month's fear phase was closer to capitulation than collapse.

This move can be seen as a test of whether Cardano can regain market confidence beyond a short-term recovery in losses. With the price rebound aligning with expectations for a technical upgrade, the key going forward is whether temporary bargain buying leads to sustained ecosystem participation and a recovery in demand.

✍️ TL;DR: Cardano price decoupling after peak FUD created rifts in community last month Metrics Used: Total Holders Link to chart: https://t.co/Xn7BNZXWpH Cardano is showing signs of life again, with 14,783 more non-empty ADA wallets added since its June 23rd bottom.… pic.twitter.com/c47cCG6Hgm