TLDR
- Cardano price dropped 4% to $0.785 after rallying 19% last week
- ADA is testing $0.75 support level following a high of $0.864
- Charles Hoskinson hinted at multiple new partnerships after Midnight upgrade
- Brave Wallet recently added ADA support, improving real-world utility
- Technical analysis suggests potential for a bounce to $1 if support holds
Cardano (ADA) is currently experiencing increased volatility after a strong performance last week. The cryptocurrency’s price has pulled back to test key support levels while the project’s founder teases new developments that could impact its future price trajectory.
The ADA token price recently dropped 4% to $0.785, cooling off after an impressive 19% rally the previous week. This pullback comes as traders take profits following a peak of $0.864 reached on Monday.
Despite the short-term correction, Cardano continues to hold above the critical $0.75 support zone. This level has proven to be an important demand area for the cryptocurrency in recent trading sessions.
The pullback follows a pattern that technical analysts describe as an inverted head and shoulders formation with a neckline near $0.75. This bullish pattern suggests potential for further upside if the support level holds.
Technical Analysis Shows Mixed Signals
The price action has shown heightened volatility in recent days. After reaching $0.864, Cardano experienced a 4.17% crash on Sunday, followed by limited gains of 1.61% on Monday before the current pullback.
Technical indicators present a mixed picture for ADA’s short-term outlook. The Relative Strength Index (RSI) recently peaked near overbought territory before reversing, suggesting a cooling of momentum during the current retest phase.
However, the 50-day and 200-day Exponential Moving Averages (EMAs) maintain a positive structure. These moving averages are approaching a “golden crossover” – a potentially bullish signal for longer-term price action.
According to Fibonacci retracement levels, a bounce from the 23.60% level at $0.762 could potentially target the 50% level at $1.08. Before reaching that target, Cardano would need to overcome resistance near the 38.20% level at $0.92.
On the downside, failure to maintain the $0.75 zone could invalidate the bullish pattern, potentially resulting in a deeper correction toward the 50-day EMA at $0.71.
Ecosystem Developments Bolster Sentiment
While price action remains volatile, recent ecosystem developments have maintained positive sentiment within the Cardano community.
A key development is the integration of ADA with Brave Wallet, enhancing the token’s real-world utility. This partnership represents a significant milestone for Cardano’s mainstream adoption strategy.
Charles Hoskinson, Cardano’s founder, has further fueled optimism by suggesting this integration is “the first of many upcoming deals.” According to Hoskinson, several partnerships originally planned for 2022 were delayed but are now being revitalized following negotiations related to the Midnight upgrade.
Hoskinson stated that these partnerships were “long overdue” and faced delays because “a certain entity dropped the ball, we got ignored.” He indicated that more announcements would follow throughout the summer and fall of this year.
The Brave announcement is the first in a series that will come out throughout the Summer and Fall that I term the fixing broken windows deals that originated from Midnight negotiations.
It was long overdue, they originally could have been engaged in 2022. A certain entity…
— Charles Hoskinson (@IOHK_Charles) May 12, 2025
The Midnight upgrade appears to be a catalyst for these new developments, potentially creating a foundation for ADA’s price recovery in the coming months.
Traders are now watching the $0.75 support level closely. A successful defense of this zone could pave the way for a return to $0.80 and potentially higher targets in the near term.
For short-term price action, the $0.80 and $0.818 levels represent immediate resistance, with $0.845 forming a more significant barrier. A breakthrough above these levels could accelerate momentum toward the $0.88-$0.90 range.
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