Recently, ADA broke through the neckline of the 'rounded bottom' pattern at $0.74, a technical signal indicating an uptrend, according to BitMonty. The next resistance levels are $1.1032, $1.3127, and $1.4846. Data from World of Charts shows $ADA challenging the long-term downtrend channel, similar to the pattern that helped prices triple in October 2024. If the uptrend continues, ADA could reach $1.3730, even $1.4846 in the short term.
Currently, ADA is trading around $0.75, slightly down after reaching a peak of $0.84 (CoinMarketCap, May 24, 2025). The support level of $0.74 on the daily or weekly chart is a key factor to reinforce the uptrend. The trading volume, with a volume-to-market cap ratio of 5.01%, indicates stable market participation. However, to reach higher targets, ADA needs to maintain momentum and community interest.
Cardano ecosystem: Long-term momentum
Aside from price fluctuations, the Cardano ecosystem is developing sustainably. According to #Messari , the total market capitalization of stablecoins on Cardano increased by 30% in the last quarter, reaching $30 million, thanks to Anzen Finance's USDA. The DeFi sector recorded a 13% growth, with the amount of ADA in the network treasury rising by 5%. The implementation of the network's 'constitution' has promoted decentralization, with the participation of decentralized representatives (DReps).
As of May 24, 2025, the market capitalization of ADA reached $27.44 billion, with a fully diluted valuation (FDV) of $34.96 billion, and 35.32 billion ADA in circulation (maximum supply of 45 billion). These metrics reflect the increasing confidence in Cardano, especially in DeFi applications and decentralized governance.
Impact on the crypto market
The breakout of ADA occurs when Bitcoin reaches $111,000 (Binance, May 24, 2025), creating a positive sentiment for altcoins. With energy-efficient proof-of-stake technology and an expanding ecosystem, #Cardano competes strongly with Ethereum and Solana in DeFi and Web3. However, maintaining the $0.74 level and sustaining trading volume is a challenge for ADA to achieve higher price targets. The development of stablecoins and decentralized governance reinforces Cardano's position, but investors need to be cautious of market volatility.
Lessons for investors
The breakout of ADA brings important lessons:
Technical analysis: Monitor patterns like 'rounded bottom' and the support level of $0.74 to determine trading timing.
Research the ecosystem: Evaluate projects through DeFi growth, stablecoins, and decentralized governance.
Diversify the portfolio: Combine ADA with stablecoins (USDT, $USDC ) to reduce volatility risk.
Monitor volume: Use CoinMarketCap, Binance to check trading volume and market momentum.
Suggestions for investors
Learn about Cardano through Binance, CoinMarketCap to seize investment opportunities as the price fluctuates around $0.75.
Follow Messari reports and announcements from Cardano about stablecoins, DeFi.
Assess market risks before investing in altcoins like ADA.
Risk warning
Investing in cryptocurrencies, including Cardano (ADA), carries high risks due to price volatility. The information in this article is for reference only and is not investment advice. Please do thorough research (DYOR) before making a decision.