TLDR
- Cardano is preparing to integrate with BitcoinOS, enabling Bitcoin staking on its network
- The integration could boost Cardano’s TVL beyond its current $330 million
- Technical analysis shows a falling wedge pattern on the weekly chart, suggesting a possible bullish breakout
- Cardano price is currently trading near $0.61, below the key $0.65 resistance level
- Long-term holders and whales have sold over 100 million ADA in the past week
Cardano’s price has been struggling below key resistance levels, trading near $0.61 as of April 16, 2025. This follows a significant drop from its November peak last year when most other altcoins were seeing substantial gains.
The cryptocurrency is facing strong selling pressure. It briefly recovered from $0.55 support but failed to break above the $0.65 level, maintaining bearish pressure in the short term.
Despite current price challenges, Cardano has a major catalyst on the horizon. The network is preparing to integrate with BitcoinOS, which would enable Bitcoin staking on the Cardano blockchain.
This integration aims to allow Bitcoin holders to leverage Cardano’s technology to generate yields without relying on centralized middlemen like Celsius, which collapsed in 2022.
The integration will use zero-knowledge cryptography to eliminate intermediaries. ZK proofs are considered secure as these smart contracts have a single function: verifying transaction correctness. They can only be compromised through a 51% attack.
Technical Indicators Show Mixed Signals
The technical picture for Cardano presents a mixed outlook. The asset is currently trading below its 50-day EMA of $0.6951, which has acted as a ceiling since early March.
Fibonacci retracement levels confirm Cardano’s current trading range. The cryptocurrency bounced from the 0.786 Fib support at $0.5490 but faces resistance at the 0.618 level around $0.7182.
The Relative Strength Index (RSI) sits at 43.5, below the neutral 50 mark. This indicates weak buying strength in the market, suggesting recovery attempts may be short-lived without fresh momentum.
On a more positive note, Cardano has formed a falling wedge chart pattern on the weekly chart. This pattern emerges when connecting the lowest and highest swings since December, with the two lines approaching their confluence levels.
Some analysts see this as a sign that ADA price might be on the verge of a strong bullish breakout in the coming weeks.
There are also indications that ADA price is now in the second phase of the Elliot Wave pattern. If this pattern continues, it could soon enter the third phase, which is typically the longest and strongest.
Whale Activity Signals Market Uncertainty
Recent on-chain data reveals interesting holder behavior. The Age Consumed metric for Cardano has jumped sharply over the past week, indicating that long-term holders have increased their selling activity.
When Cardano’s price saw a brief rise earlier in the week, these long-term investors likely took the opportunity to cash out and lock in gains. Their exit added downward pressure on the market.
Adding to this bearish trend, whales have offloaded over 100 million ADA in the past week. This large-scale distribution suggests that even major holders are reducing their exposure to the cryptocurrency.
The combined effect of long-term holder exits, whale distribution, and a failed breakout attempt at $0.65 reinforces the idea that Cardano remains under strong selling pressure in the short term.
Trading volume for ADA also remains muted. The lack of strong buying interest suggests that recent price action does not reflect a confident reversal.
For Cardano to reverse its current trend, the price needs to reclaim the $0.65 level and flip it into support. If that happens, ADA could aim for $0.70 and potentially higher levels.
However, the bullish outlook would be invalidated if the coin falls below $0.311, the lowest level reached in November. This price also coincides with the ascending trendline that connects the lowest points since January 23.
In the longer term, if the integration with BitcoinOS succeeds, it could bring billions of dollars worth of Bitcoin to the Cardano blockchain. This would likely boost Cardano’s total value locked beyond its current $330 million.
Such an increase in network activity and value could eventually drive the Cardano price higher, possibly reaching its all-time high of $3 in this market cycle according to some optimistic projections.
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