According to data from crypto.news, Cardano (ADA) is down 2.54% as of the time of writing, with a price of $0.6404 and a market capitalization of $23.12 billion. At the current price, the token has dropped 15% over the past 30 days and is still 44% lower than its peak earlier this year.
Previously, Cardano hit a new high for 2025 on March 3, soaring 75% in a single day, largely due to its inclusion in the cryptocurrency strategic reserve plan announced by then-President Donald Trump the day before.
Another contributing factor is investors' optimism regarding the U.S. Securities and Exchange Commission possibly approving Grayscale's Cardano spot ETF. However, with reduced network activity and the SEC postponing its decision on the ETF until July 15, 2025, investor sentiment has since cooled.
Despite recent weak performance, ADA's technical structure is showing potential signs of recovery. The bullish reversal indicator—a descending wedge pattern—is forming, and price action is narrowing towards a key support level.
ADA is approaching the $0.51 region, a level that was defended by bulls during the pullback phase in April. If buyers regain control of the market, a sustained drop towards this level could signal a trend reversal.
The token has also fallen below its 20-day exponential moving average, reinforcing short-term bearish pressure. The MACD indicator remains negative, indicating a lack of bullish momentum, while the Relative Strength Index (RSI) is at 41, suggesting it is still in a bearish state but has not yet reached oversold territory.
A decisive breakout above the wedge and the key resistance level of $0.68 could signal a reversal and drive ADA to the $0.86 level, approximately 34% higher than the current price.
Conversely, if ADA fails to maintain above $0.51, it could further decline to the next major support level of $0.32.
Despite the ongoing weak price action, new developments could act as a catalyst for recovery. Cardano founder Charles Hoskinson recently confirmed that XRP will be integrated into Cardano's native wallet platform, Lace Wallet. This move will allow users to manage XRP, ADA, and Bitcoin simultaneously, enhancing usability and cross-asset exposure.
Additionally, Cardano is exploring DeFi plans based on XRP and potential integration of Ripple's RLUSD stablecoin, which could enhance liquidity across its ecosystem.
Other positive factors include the anticipated Glacier airdrop (related to Cardano's Midnight protocol) and Hoskinson's proposal to convert $100 million worth of ADA into Bitcoin and stablecoins. This funding strategy aims to create non-inflationary income and stimulate growth in the Cardano DeFi ecosystem.