Cardano Price News: Double-Bottom Could Push ADA to $0.75

ADA has been one of the most resilient tokens this year in the top 10 as its year-to-date losses currently stand at 22.7% compared to nearly 50% and 29% that Ethereum (ETH) and Solana (SOL) have lost during this same period respectively.

The Cardano blockchain lags behind its peers in multiple facets. Its decentralized finance (DeFi) ecosystem is virtually non-existent compared to the billions of dollars in total value locked (TVL) that its strongest rivals in the smart contracts space have attracted.

Meanwhile, the network also missed the boat on the meme coin hype and failed to capitalize on this huge trend.

One of the main reasons why Cardano has underperformed its competitors on the technical side is the lack of support for top stablecoins like USDT and USDC, both of which are commonly used by crypto investors to transfer assets to different ecosystems and decentralized apps.

Cardano execs claim that they are focused on developing real-world applications like Veridian – an identity management tool that was recently launched to provide companies with an enterprise-grade authentication solution powered by blockchain tech.

The project is at a very early stage still and, in terms of adoption, the Cardano blockchain has failed to prove, to this date, tangible results that translate into higher transaction volumes for the network and justify its high market value.

ADA Headed to Retest Former Trend Line Support

From a technical standpoint, the daily chart shows how our bearish target for Cardano was fully realized as it dropped to $0.5750.

Now the price has bounced strongly off this level. There was strong demand at this level as indicated by that day’s above-average trading volumes. This bounce was followed by a big jump last Wednesday when Trump backpedaled on tariffs.

Momentum indicators are now bullish as the Relative Strength Index (RSI) sent a buy signal and has been surging in the past 6 days.

Moreover, the MACD’s histogram shows that positive momentum has been accelerating as well. Based on these technical indications, everything points to an upcoming retest of the $0.75 level – a key trend line resistance for ADA.

This translates into a 16.5% short-term upside potential. However, trend line retests typically provide confirmation of the continuation of a trend. Hence, traders should be cautious once the price gets to this target as a rejection of a move above this threshold could result in a sharp drop for ADA.

ADA’s Weakness Creates Opportunity for a Late Entry

Moving to the hourly chart, ADA broke a key resistance area on Saturday and is on a clear uptrend as the price has been making multiple consecutive higher lows since last Monday.

However, a bearish divergence popped up in the RSI that triggered a temporary downtrend starting on Sunday morning.

ADA’s key support in this lower time frame stands at $0.630. As the trend is bullish both on the daily and hourly charts, a long position has the highest odds of delivering a positive outcome.

Traders could wait for the price to drop to this key support area to get the most advantageous entry with the stop-loss set right below the nearest low. Using the $0.670 level as the exit target, this trade provides an attractive 2.4 risk-reward ratio.