Cardano (ADA) Reclaims Support, Eyes $0.91 Breakout

Andrew Chen
Cardano (ADA)

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Key Takeaways:

  • ADA has reclaimed $0.59 support and is eyeing a breakout above $0.67.
  • Whale accumulation and reduced short-term speculation support a bullish bias.
  • Elevated NVT ratio and weak on-chain activity could limit upside potential.

Cardano [ADA] has reestablished support near the $0.59 level after weeks of bearish pressure, now trading around $0.61. Bulls are aiming for a decisive breakout above the $0.67 resistance, which aligns with the upper boundary of a descending channel. If successful, ADA could surge toward the $0.83–$0.91 range. However, without a daily close above $0.67, rejection remains a possibility.

Buyers Dominate as ADA Derivatives and Spot Metrics Align Bullishly

Spot Taker CVD data indicates that aggressive buyers have consistently executed market orders at the ask price for over 90 days. This trend suggests growing conviction and a possible foundation for a sustained ADA rally. Derivatives data also support short-term bullish sentiment, highlighting strengthening momentum. Yet, failure to breach $0.67 could return ADA to consolidation, keeping bulls on edge.

Whale Accumulation Signals Confidence With $2.33M Outflow

On-chain data reveals a net outflow of $2.33 million in ADA from exchanges on July 4th, signaling whale accumulation. This move toward self-custody reduces near-term selling pressure and can support price stability. If the trend continues, it may underpin a bullish breakout. However, a reversal in netflows could undermine recent recovery efforts.

Network Utility Lagging Behind Price as NVT Ratio Spikes

Despite improved market structure, ADA’s Network Value to Transactions (NVT) ratio has surged to 273, indicating that market value is outpacing network utility. This imbalance suggests speculative activity may be outstripping real usage. Without improved on-chain transaction volume, ADA’s rally risks being unsustainable in the long term.

Source: Santiment

According to Realized Cap HODL Waves, the activity of 1–7 day holders has dipped below 1.5% of the realized cap. This decline reflects reduced speculative interest and increased long-term holding, which can create a more stable base for price action. However, sudden re-entry by short-term traders could reintroduce volatility.

Also Read: Cardano Price Gains 12% as Long-Term Holders Accumulate — Can ADA Break $0.60 Resistance?

The volume of ADA coins aged 1–7 days being spent on-chain has plummeted to $11 million from highs above $100 million. This suggests less short-term profit-taking and growing investor conviction. If this trend continues, sell pressure may remain subdued, giving bulls more room to drive price higher.

Source: Santiment

Cardano’s technical setup and improving on-chain sentiment provide a promising backdrop, but valuation concerns and the need for stronger network activity remain. A confirmed breakout above $0.67 is crucial to unlock a rally toward $0.91. Until then, consolidation and cautious optimism will likely define ADA’s near-term outlook.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

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