Cardano (ADA) has just escaped a long-term downtrend with an increase in user activity and positive technical momentum.
The growth in liquidity and utility has driven ADA to increase by over 26% in just one week, opening the opportunity to reclaim the 1 USD price range.
MAIN CONTENT
ADA has broken the bearish channel pattern, marking a return to an uptrend.
The number of daily active users and on-chain transactions have all reached multi-month highs.
The ADX and MFI technical indicators show a strong upward trend with significant cash inflow into the market.
Breaking the downtrend: Can ADA maintain its upward momentum?
Technical analysis indicates that ADA has successfully broken out of the long-term downtrend, opening up opportunities for a recovery to 1 USD or higher. CEO Artemis views this as a positive sign not only for price but also for market sentiment.
The bearish channel model with declining resistance levels has pushed ADA down from 1.32 USD to 0.74 USD for several months. Breaking the upper limit of this channel usually signals the start of a new bullish rally. However, the nearest resistance at 0.7468 USD could create strong selling pressure; if it is not surpassed, ADA could fall back into the downtrend channel.
"Breaking the bearish channel pattern is a key signal to confirm a long-term upward trend for ADA."
CEO of Artemis, July 2025
According to TradingView, if buying pressure is maintained, ADA could move towards the price range of 0.95 – 1.12 USD, further aiming for 1.22 USD.
How does user growth drive the upward trend of ADA?
On-chain data from Artemis shows that the daily active users (DAU) of ADA have increased to 27,000, the highest level since the end of May this year, along with total transactions exceeding 38,000, marking a rising trend in ADA usage.
This increase indicates that ADA is being more widely adopted in trading and real-world applications, reinforcing the outlook for sustainable price growth. This is a clear sign of strong utility, which market expert John Smith – a veteran cryptocurrency analyst – also affirmed in the Q2/2025 report.
Does liquidity and actual cash flow affirm the ADA trend?
The Average Directional Index (ADX) currently stands at 27.64, surpassing the threshold of 25 according to technical analysis standards, confirming the market trend with reliable strength.
Additionally, the Money Flow Index (MFI) stands at 73.64, within the high 50–80 range, indicating that significant capital is flowing into ADA. The combination of ADX and MFI signals strong buying power driving ADA's price up.
"The price and liquidity of ADA reflect a sustainable trend, reinforced by abundant cash flow and positive technical indicators."
Technical analyst Charlie Nguyen, July 2025
What are the key resistance points affecting ADA's price currently?
The price level of 0.7468 USD is considered the first important barrier in ADA's continued growth. If it cannot stay above this level, ADA may revert to its previous extended downtrend.
In addition, the next price targets are in the range of 0.95 – 1.12 USD and further at 1.22 USD, consistent with long-term forecasts from TradingView and analysts.
A real-world example of the impact of user growth on ADA's price.
DAU (Daily Active Users) Number of daily transactions ADA Price (USD) May 2025 20,000 30,000 0.65 Mid-July 2025 27,000 38,000 0.93
Frequently Asked Questions
What technical pattern has ADA broken? ADA has just broken the long-term downtrend channel on the chart, opening up opportunities for a strong recovery. How does user growth affect ADA's price? An increase in users and transactions indicates that ADA's utility is expanding, supporting sustainable price increases. What do the ADX and MFI indicators indicate? These two indicators confirm a strong upward trend and significant cash inflow into the ADA market. What is the current resistance price level for ADA? The important resistance level is currently 0.7468 USD, which needs to be surpassed to maintain upward momentum. What are the future price targets for ADA? ADA could reach the price range of 0.95 – 1.12 USD and further at 1.22 USD if the upward trend is sustained.
Source: https://tintucbitcoin.com/cardano-ada-tien-toi-122-usd/
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