- ADA forms inverse head-and-shoulders pattern; breakout above $0.7477 resistance could trigger bullish reversal amid $0.70 sell pressure.
- Active addresses rose 12%, new users up 5%, signaling growing network use and speculative interest in ADA.
Cardano (ADA) is testing a bullish technical pattern amid rising user engagement and subdued leverage in derivatives markets. The token’s daily chart shows an inverse head-and-shoulders formation, a structure often linked to trend reversals, with a neckline resistance at $0.7477. At press time, ADA traded at $0.6875, down 2.06% in 24 hours but holding above key support levels.
Technical Setup and Liquidity Pressures
The inverse head-and-shoulders pattern — marked by a central trough (head) flanked by two shallower dips (shoulders) — suggests buyers may regain control if ADA breaches $0.7477.
Binance liquidation heatmaps reveal concentrated sell orders near $0.70, creating a battleground for short-term price action.
On-Chain Metrics Reflect Growing Interest
Active Cardano addresses rose 11.99% over the past week, while new addresses increased 4.79%. Zero-balance addresses, often tied to speculative activity, jumped 12.26%. These trends indicate heightened network participation, typically a precursor to price appreciation when paired with positive sentiment.
Santiment’s MVRV Z-score, which measures whether an asset is overvalued relative to its history, stood at 0.056 for ADA.
This low reading implies the token remains undervalued, with limited profit-taking pressure — a factor that could support gradual upward moves.
Derivatives Markets Show Caution
ADA derivatives volume fell 30.67% to $1.30 billion, while open interest dropped 5.37%. Options activity plummeted 92.94%, reflecting reduced speculative trading. While lower leverage may curb volatility, it also signals cautious trader positioning ahead of a potential breakout.
For ADA to capitalize on its technical setup, buyers must absorb sell pressure near $0.70 and secure a weekly close above $0.7477. The combination of improving address metrics and restrained derivatives activity suggests organic demand could drive gains, though macroeconomic factors and broader crypto market trends remain wildcards.
Cardano’s ability to convert technical promise into price action hinges on overcoming immediate liquidity hurdles. Success would reinforce its position in the mid-cap altcoin tier; failure could prolong consolidation. For now, traders watch the $0.70 zone — a line between hesitation and opportunity.
Cardano (ADA) is trading at approximately $0.6645, reflecting a modest decline of about 2.88% over the past 24 hours. This positions ADA roughly 78% below its all-time high of $3.10, indicating a prolonged period of consolidation.
Recent technical analyses suggest potential bullish momentum. ADA has broken out of a falling wedge pattern and is forming an inverse head and shoulders pattern, both of which are considered bullish reversal indicators.
ETHNews analysts have identified key resistance levels at $0.74 and $0.88; surpassing these could pave the way toward the $1 mark.
Fundamentally, Cardano’s ecosystem is experiencing growth, with increased activity in decentralized finance (DeFi) projects and the implementation of scaling solutions like Hydra. Additionally, the potential approval of a Cardano ETF by Grayscale could attract institutional investors, further boosting market sentiment.
Market sentiment remains cautiously optimistic, with some forecasts predicting ADA could reach between $1.05 and $1.20 by mid-to-late 2025, contingent on broader market trends and continued development within the Cardano network.
