- Cardano’s ADA price is showing signs of a potential breakout as founder Charles Hoskinson hinted at talks with Ripple, including the possibility of minting RLUSD stablecoin on Cardano.
- With stablecoin adoption still limited on its network and a bullish technical setup forming, ADA could be primed for a rally toward $1.32 if momentum builds.
Cardano’s price has been subdued over the past few days, slipping for three consecutive sessions even as Ethereum soared to record highs. Yet, the blockchain’s native token, ADA, may be setting up for a bullish breakout after founder Charles Hoskinson hinted at potential collaboration with Ripple.
Cardano Price to Benefit from Ripple Deal Speculation
Despite muted price action, Cardano has a number of underlying catalysts that could drive momentum. One of these is the ongoing Glacier airdrop, which is distributing millions of NIGHT tokens to ADA holders. While this has attracted community attention, the bigger spark came from Hoskinson’s weekend remarks.
In a video statement, Hoskinson revealed that Cardano was in talks with Ripple regarding a “mutually beneficial” partnership. One possible collaboration could see Ripple’s RLUSD stablecoin minted on the Cardano blockchain.
That would be a significant development, as RLUSD has rapidly grown to $686 million in assets since launching in December, making it one of the fastest-growing stablecoins in the market.
Stablecoin adoption has been one of Cardano’s biggest weaknesses. According to DeFi Llama, its stablecoin supply currently sits at just $37 million, far behind other major blockchains. The largest stablecoins on Cardano, Moneta (USDM), Anzens (USDA), and iUSD, remain relatively small, while USDC and USDT account for only $4.25 million and $1 million, respectively.
A Ripple integration could help fill this gap and bring meaningful liquidity to its DeFi ecosystem.
Hoskinson also noted that his conversations with Ripple touched on Bitcoin interoperability, which has been a research focus for Cardano for years. A potential deal could position Cardano as a hub for Bitcoin DeFi, with Ripple’s XRP playing a role in bridging liquidity.
Additionally, he floated the idea of forming long-term development teams involving Cardano, Ripple, and Near Protocol.
Still, investors should approach the news with caution. Hoskinson has previously teased high-profile collaborations, such as with Chainlink and even SpaceX, that ultimately never materialized.
ADA Price Technical Outlook
From a technical perspective, Cardano’s weekly chart is flashing signals of an imminent move. The token has formed a symmetrical triangle pattern, connecting lower highs since December’s peak at $1.33 and higher lows since August last year. With the two lines converging, ADA is nearing a breakout zone.
A look back at historical support strengthens the bullish case. ADA has already formed a triple bottom at $0.27, its lowest level in January and July 2023, and again in July this year. More recently, the price broke above its neckline resistance at $0.8022, setting the stage for a possible rally.
If momentum builds, analysts project ADA could climb to $1.3225, aligning with its December highs and the 38.2% Fibonacci retracement level.
However, a breakdown below the 50-week EMA at $0.7115 would invalidate this bullish setup, potentially dragging ADA back toward the $0.27 zone.
With Ripple partnership speculation, stablecoin growth prospects, and a strong technical setup, Cardano may be on the verge of a breakout. While Hoskinson’s history of ambitious announcements warrants skepticism, the potential integration with Ripple could mark a turning point for ADA’s ecosystem and price trajectory.
