Cardano (ADA) Price: Massive Accumulation Hints at Potential Breakout

TLDR

Table of Contents

Cardano recently broke past the $0.60 resistance level
Price action remains inconsistent with no clear bullish trend
Historical pattern suggests potential for a 450% price increase
Strong accumulation for seven consecutive weeks totaling $379 million
Network fees have dropped 52% in the past three months

Cardano has recently broken through the $0.60 resistance level, marking a key moment for the cryptocurrency. However, the price movement has been inconsistent without establishing a clear bullish trend. This comes despite ambitious predictions from Cardano founder Charles Hoskinson, who has suggested the token could eventually reach $10.

The reality appears more tempered. While ADA’s price pushed through the $0.60 mark, it continues to struggle below the $1 threshold that many investors are watching closely.

Looking back at early February, ADA experienced a surge with volume exceeding $1.8 billion, pushing the price to $0.80 in just four days. Current conditions show less excitement, with volume hovering around $640 million, suggesting the breakout momentum has faded.

Technical indicators also point to cooling momentum. Volume has increased by only 11%, signaling a return to consolidation rather than continued expansion. Additionally, ADA’s Relative Strength Index (RSI) has only reached overbought territory once this year.

Cardano $ADA approaching the HUGE resistance level at $0.75
It was denied the last 5 times, 6th time lucky?? pic.twitter.com/ONnFFhDHUL
— Trader Edge (@Pro_Trader_Edge) April 29, 2025

Historical Patterns Show Promise

While current metrics may seem uninspiring, historical analysis offers a more optimistic outlook. The weekly chart reveals that ADA broke through an important resistance zone last November. Since then, the price has remained within that zone, with the former resistance level now being tested as support.

This pattern closely resembles what occurred in 2020 before ADA surged 4000% to reach its all-time high of $3.10. If history repeats, a 450% increase from current levels could be possible.

Market confidence appears strong based on accumulation data. According to Coinglass, there has been substantial accumulation for seven consecutive weeks, totaling $379 million in ADA purchases. This represents 1.7% of ADA’s total market capitalization of $22 billion.

For perspective, during a comparable phase in 2020, only $9.57 million was accumulated in ADA. Today’s buying pressure is nearly forty times higher, potentially creating scarcity and upward price pressure, though it’s worth noting that the price was considerably lower back then.

Derivatives and Fundamentals

The derivatives market also shows positive sentiment. The Open Interest Weighted Funding Rate stands at 0.0086%, indicating traders prefer long positions and expect price increases.

However, not all metrics support a bullish case. Cardano’s network fees have dropped 52% over the past three months, now sitting at just $8,100. This decline in transactional usage doesn’t align with the bullish case Hoskinson has presented.

Performance across several key network metrics has reached multi-month lows, further complicating the outlook for ADA. With both technical and fundamental indicators sending mixed signals, reclaiming the $1 level appears challenging in the near term.

For the remainder of Q2, barring significant changes in trading behavior or fundamentals, ADA will likely remain below $1. While the historical pattern suggests potential for substantial growth, current market conditions may require patience from investors watching this altcoin.

Cardano continues to develop its blockchain technology and ecosystem, but price action will ultimately depend on broader market trends and the project’s ability to demonstrate increasing adoption and utility.

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