Cardano ($ADA ) has kicked off a promising recovery by reclaiming its $0.62 support zone after weeks of downtrend. The price climbed to $0.65, marking a 26% gain from its weekly low.
This surge aligns with a wider crypto market rebound, but lingering questions remain: Can ADA hold this level, or will profit-taking kick in again?
Market Indicators Show Mixed Signals
Despite bullish momentum:
MACD shows a bullish crossover.
Spot inflows remain under $1 million- signaling weak buying pressure.
Derivatives volumes dropped by 23.77%, with options volume plunging 92.94%.
While open interest rose 2.74% and funding rates turned positive, the lack of strong demand in both spot and derivatives markets hints at potential short-term exhaustion.
Midnight Sidechain: The X Factor?
Cardano founder Charles Hoskinson recently reignited community excitement with news about Midnight, a new privacy-focused Cardano sidechain. He claims it could bring millions of users to the Cardano ecosystem and improve interoperability across top chains.
The comparison to Cardano's earlier smart contract hype is hard to ignore. But can Midnight finally elevate Cardano into real competition with Ethereum and Solana?
Network Activity Remains Strong Despite Bearish Conditions
Even during market dips, Cardano has maintained healthy on-chain activity:
Daily DEX volume has stayed above $1 million since early April.
It reached $2.58 million in the past 24 hours.
Token volume hovered around $823 million.
This consistency suggests underlying user engagement, even if price action is catching up slowly.
What’s Next for ADA?
While ADA’s technical breakout above $0.62 is promising, the lack of strong inflows and the possibility of profit-taking could halt its progress. The Midnight sidechain could be a bullish long-term catalyst, but short-term gains depend heavily on renewed market confidence.
