TLDR
- Cardano (ADA) price is hovering around $0.74, having recovered over 4% this week
- Long-to-short ratio reached a monthly high of 1.15, indicating bullish sentiment among traders
- ADA’s stablecoin market cap hit an all-time high of $30.77 million, showing growing DeFi adoption
- Technical analysis suggests potential for a 13-15% gain if ADA breaks above the $0.77 resistance
- An ascending triangle pattern on the 4-hour chart could signal an upcoming breakout toward $1
Cardano (ADA) is trading around $0.74 as of Thursday, March 27, 2025, after recovering more than 4% so far this week.
The eighth-largest cryptocurrency by market cap has been consolidating within a tight range between $0.69 and $0.75 for several weeks, but recent on-chain data and technical patterns suggest a possible upward movement.
ADA Price
The long-to-short ratio for Cardano has reached 1.15, its highest level in over a month according to Coinglass data. This ratio above one shows that more traders are placing bullish bets, expecting ADA’s price to rise in the near future.
Adding to the positive outlook, ADA’s stablecoin market capitalization reached a new all-time high of $30.77 million on Monday. Data from DefiLlama confirms this increase, which points to growing utility and adoption of Decentralized Finance (DeFi) on the Cardano network.
The technical chart shows that ADA faced rejection around its 50-day Exponential Moving Average of $0.77 on Wednesday, dropping 2.16%. This level coincides with the weekly resistance level, making the $0.77 mark a key hurdle for bulls to overcome.
On the daily chart, the Relative Strength Index (RSI) reads 49 and is pointing upward toward the neutral level of 50. This indicates fading bearish momentum, though the RSI would need to move above 50 for the bullish trend to gain strength.
The Moving Average Convergence Divergence (MACD) indicator showed a bullish crossover on Tuesday. This technical signal typically indicates a buy opportunity and suggests the beginning of an upward trend.
Analysis of the 4-hour chart reveals an ascending triangle pattern forming. This pattern shows ADA price movement between a horizontal resistance of $0.775 and a rising trendline, which often precedes a breakout.
The Bollinger Bands on the 12-hour timeframe appear to be squeezing. This compression typically signals an upcoming period of increased volatility, which could lead to a strong price movement in either direction.
Exchange Outflows
Despite the overall consolidation, exchange data shows an outflow of $13.75 million worth of ADA tokens in the past 24 hours. According to Coinglass, this indicates that whales and long-term holders may be accumulating the token rather than selling.
Such outflows from exchanges during a period of weak market sentiment can reduce selling pressure. This decreased supply on exchanges could potentially trigger an upward price movement if demand increases.
Trading volume for ADA dropped by 18% in the past 24 hours. This decrease suggests that traders and investors remain cautious and are hesitant to participate heavily in trading the token during this consolidation phase.
If ADA breaks above the $0.77 resistance level and closes a daily candle above it, analysts suggest it could rally by 13-15%. This movement would put the next target at around $0.85, with potential to reach $0.90 if momentum continues.
Some more bullish projections see ADA potentially reaching the $1 mark if the breakout from the ascending triangle pattern occurs with high volume. This would represent a gain of over 35% from current levels.
However, traders should remain cautious as Santiment’s Age Consumed metric shows a spike. This indicates that dormant ADA wallets are becoming active, which could increase selling pressure if these long-term holders decide to take profits.
The current market uncertainty may be influenced by broader economic factors. On Wednesday, ADA price dropped over 2% following news of a 25% tariff by United States President Donald Trump on all foreign-made cars, showing that crypto prices remain sensitive to macroeconomic developments.
