Cardano (ADA) stumbles with a 1.23% drop in 24 hours, but could a rally towards $1 be on the horizon? Despite waning investor interest, spot traders are backing the token. Analysis of technical signals and on-chain data for 2025.
Cardano (ADA) is going through a pivotal period. After a +9.09% rally in the last month, the token has dropped by 1.23% in 24 hours, trading around $0.74 (as of May 28, 2025). Investors are questioning: can buyers push ADA towards $1, or does waning interest threaten a more severe correction? Technical analysis and on-chain data shed light on the outlook.
Initially, ADA is testing a key ascending support line on the daily chart, around $0.74. According to analyst CryptoSentry (@CryptoSentryX on X), “this support has held three times since March 2025. A bullish breakout could push ADA to $0.96, a rise of +30.54%.”
This level aligns with a Fibonacci resistance at $0.95. If buyers dominate, a move towards $1 is plausible, a psychological threshold not reached since January 2024.
However, a breach below $0.74 could send ADA towards the next support at $0.68, or even $0.60 in case of panic.
A bullish trendline is present, providing support at $0.71, which could be breached if the price falls below it. Moreover, this price corresponds to the POC in 12H. The price of $0.71 is therefore crucial for the token’s future in the coming weeks.
Hence, Cardano stands at a crossroads between a bullish recovery and a more severe correction. If a correction occurs, the zone at $0.6 could present an interesting buying opportunity to enter the token.
Another indicator to also monitor will be the daily RSI. If it approaches the oversold zone, it will provide confluence for an imminent rebound.
Recently, spot traders have been supporting ADA with consistent buying activities. Net outflows from exchanges have strengthened the altcoin’s bullish prospects, indicating appeal to long-term holders.
However, a significant decline in the number of active investors on the Cardano blockchain has been noted. This trend could negatively impact ADA’s price, as seen in the futures market.
Furthermore, the futures market amplifies concerns. Long positions have decreased by 12% on Binance Futures, indicating caution among speculative traders. The long/short ratio is at 0.9, a neutral but fragile level.
Positive point: the Cardano community remains one of the most dedicated, just behind Bitcoin, according to CoinMarketCap. The long-term future is therefore not in question.
In conclusion, Cardano’s future will depend on spot traders’ movements, investor interest, and resolving current liquidity levels. Investors must remain vigilant to not miss the upcoming market twists in the cryptocurrency space.
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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