TLDR
- Cardano (ADA) has gained 17% since early July, currently trading at $0.626
- Price shows bullish momentum on daily charts but weekly structure remains bearish
- Key resistance lies at $0.68-$0.70 supply zone, with support at $0.535
- $2.98 million in short positions liquidated as Bitcoin reaches new $113,000 ATH
- Analysts project potential $1 target but timeline varies, with some seeing it by month-end
Cardano has been gaining ground over the past week, climbing nearly 10% as the broader cryptocurrency market rides Bitcoin’s momentum to new all-time highs.
The token currently trades at $0.626, representing a 17% increase from its early July low of $0.536. This recovery comes as Bitcoin reaches $113,000, lifting the entire crypto market.
Short traders have been caught off guard by the sudden price movement. Data shows $2.98 million in short positions were liquidated out of a total $3.40 million in 24-hour liquidations.
The weekly chart tells a more cautious story. ADA has been forming lower highs and lower lows since December, maintaining a bearish structure despite the recent gains.
However, the daily timeframe paints a different picture. The price has established higher lows and higher highs over the past two weeks, suggesting a shift in short-term momentum.
Technical Indicators Show Mixed Signals
The Relative Strength Index (RSI) has crossed above the neutral 50 mark on daily charts. This indicates momentum has swung from bearish to bullish in the near term.
The On-Balance Volume (OBV) indicator also shows an upward trend over the past two weeks. This suggests steady demand that could support further price increases.
A critical support level sits at $0.535, which represents the 78.6% Fibonacci retracement level. As long as this level holds, investors may remain optimistic about a potential recovery.
The immediate resistance zone lies between $0.68 and $0.70. This area coincides with a fair value gap from June, making it a significant supply zone that bulls must overcome.
Breaking above this resistance would signal strong bullish conviction. However, failure to clear this level could result in renewed selling pressure.
On-Chain Metrics Raise Concerns
Despite the positive price action, on-chain data reveals some worrying trends for long-term investors.
Development activity has been declining steadily since February. Cardano was once known for its high developer engagement, making this drop particularly concerning.
The 180-day circulation metric shows reduced on-chain activity. Daily active addresses have remained flat since March, suggesting limited organic demand.
These metrics indicate that while speculative interest may be driving prices higher, fundamental network usage hasn’t shown corresponding growth.
Market Catalysts and Future Outlook
Institutional interest appears to be growing. Reports suggest Donald Trump has included ADA in crypto reserve considerations, potentially boosting investor confidence.
Several cryptocurrency ETF applications remain pending with the SEC. Grayscale and Canary have both filed for spot Cardano ETFs, with acknowledgment received in February 2025.
Approval of these ETFs could provide a significant catalyst. Such products would track ADA’s daily price based on data from multiple cryptocurrency exchanges.
Near-term price predictions vary among analysts. Some expect ADA to test $0.70 resistance within days, while others see a more gradual climb.
CoinCodex forecasts a 25.73% rise to $0.788964 by August 8. Their analysis shows neutral sentiment with the Fear & Greed Index at 71, indicating greed in the market.
More optimistic projections suggest ADA could reach $1 by the end of July. However, this would require continued buying pressure and broader market support.
Long-term forecasts remain bullish. Finder’s panel of financial experts projects a potential rise to $3.85 by 2030, representing a 550% increase from current levels.
The immediate focus remains on the $0.68-$0.70 resistance zone. Traders are watching whether ADA can break through this critical supply area with sufficient volume and conviction.
The post Cardano (ADA) Price: Weekly Gains Reach 10% as Short Liquidations Hit $2.98 Million appeared first on Blockonomi.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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