Cardano’s ADA token may be preparing for a major breakout, according to analysts who cite technical signals, whale accumulation, and expanding ecosystem upgrades. Zenu (@0x_zenu) said ADA is “quietly coiling” after months of sideways trading, while a TradingView analyst described the token as “about to pop.” Both pointed to chart patterns and network growth as evidence ADA could soon move higher.
Zenu noted a bullish divergence forming on the Relative Strength Index (RSI). The RSI measures momentum by comparing recent gains and losses on a scale of 0 to 100. A reading above 70 often signals an asset is overbought, while below 30 suggests it is oversold. ADA’s RSI is in the mid‑50s, a neutral zone, but it has been rising even as the price has lagged. Analysts explained that this divergence often signals fading selling pressure and the possibility of a trend reversal.
MACD and Trendlines Confirm Key Levels
Charts from TradingView show ADA trading near $0.72, with the Moving Average Convergence Divergence (MACD) indicator trending sideways. The MACD compares two moving averages to show momentum shifts. When the MACD line crosses above the signal line, it often signals a bullish turn. Analysts said the indicator remains close to a crossover point, suggesting that ADA could shift direction quickly.
The chart also shows ADA breaking above a multi‑month downtrend but facing resistance between $0.83 and $0.85. According to analysts, clearing this zone with strong trading volume would confirm a breakout. If resistance holds, ADA may retreat toward immediate support near $0.70, a level that has repeatedly acted as a price floor in recent sessions.
On‑chain data supports the analysts’ calls. Santiment data shows more than 21,000 daily active addresses on the network and around 460,000 addresses active in the past 30 days. Transaction volume is steady at about 128 million ADA.
At the same time, whale wallets holding millions of tokens have added over 270 million ADA since late July. Analysts said such accumulation often shows confidence from large investors, especially when combined with steady network activity, and has historically preceded upward moves.
Cardano Ecosystem Expands With Hydra, Midnight, and CIP‑68 Upgrades
The analysts also tied their bullish outlook to ongoing ecosystem upgrades. Hydra, Cardano’s Layer‑2 scaling solution, is now live. It is designed to process transactions faster and at lower cost by running channels off the main chain while still anchoring them to it for security. Analysts explained that this upgrade can support more decentralized applications, reduce congestion, and improve the user experience on Cardano.
Later this year, Cardano expects to launch Midnight, a sidechain built to handle privacy‑focused smart contracts. Midnight allows transactions and applications that protect user data while meeting regulatory requirements. It also adds interoperability, making it easier for Cardano to connect with other blockchains. Analysts said this feature could bring in more enterprise and institutional adoption.
Another upgrade, Cardano Improvement Proposal 68, has introduced new metadata standards for native tokens. Metadata stores information about tokens, such as their use cases and attributes. CIP‑68 allows this metadata to be updated, making tokens more flexible and able to support evolving use cases. Analysts said this development could expand real‑world asset tokenization and next‑generation NFT designs on Cardano.
Cardano DeFi Value at $330M But Far Behind Solana and Ethereum
Despite price pressure, Cardano’s DeFi sector remains active. Data from DeFiLlama shows Total Value Locked at $330.57 million, down 5.36% in the last 24 hours. Daily decentralized exchange volume reached $3.19 million, while NFT trading volume totaled $59,638. The network also generated over $71,000 in daily application revenue. Analysts noted that while Cardano’s TVL is below peaks seen in 2024, the figures show sustained activity across decentralized applications and NFTs.
Cardano’s DeFi sector remains far smaller than its peers: Solana holds about $4.5 billion in TVL, while Ethereum leads with nearly $50 billion. Analysts said this comparison shows Cardano has room to grow, though it also indicates towards the scale of the challenge ahead.
Additionally, the odds of a U.S. Cardano exchange‑traded fund approval stand at 84%. Analysts said an ETF could make ADA more accessible to institutional investors, adding to existing whale accumulation trends. They noted that similar approvals for Ethereum ETFs earlier this year led to significant inflows, and a Cardano ETF could have a comparable effect.
Zenu predicted ADA price could reach $1.20 in the short term and $3.25 over the longer horizon if resistance levels break. The TradingView analyst agreed, calling ADA the “sleeper play of this cycle.” Both cautioned that failure to break above $0.85 could send the token back to support around $0.70.