Cardano ADA Gains 12.6% But Signs Point to Short-Term Consolidation

Cardano (ADA), long considered one of the most underrated major altcoins, has risen 12.6% in the past seven days, aligning with the broader crypto market rally driven by Bitcoin and Ethereum [1]. While the $1 price target remains within reach, key on-chain metrics and technical indicators suggest a potential short-term consolidation period before the next upward push.

Exchange inflows have turned positive for the first time since March 2025, signaling that some investors may be preparing to take profits or liquidate positions [1]. This trend breaks a months-long pattern of coins being moved out of exchanges into cold storage, which had been a sign of bullish sentiment. A continuation of these inflows could add short-term sell pressure and slow ADA’s trajectory toward $1. The long/short ratio has also shifted slightly bearish, with short positions growing in recent sessions, reinforcing the possibility of a pullback [1].

Technical indicators further support the notion that ADA’s upward momentum may be cooling. The Chaikin Money Flow (CMF) has diverged from price, forming a lower low despite ADA’s recent rise to $0.82. This divergence is often a precursor to a market pause or correction [1]. Similarly, the On-Balance Volume (OBV) has not reached new highs in line with ADA’s price gains, indicating weaker buying volume behind the rally [1]. These signs suggest that while the overall trend remains bullish, the market may need a brief cooldown before the next phase of buying.

ADA is currently trading near $0.82, just below a key resistance level at $0.841, which is the 0.618 Fibonacci extension level. A strong volume breakout above this level could pave the way to $0.8645, followed by $0.8835 and eventually the $0.90–$1.00 psychological range [1]. On the downside, immediate support is located at $0.81, followed by $0.7769 and $0.7515. A deeper correction could test $0.6842, though that would likely require a broader market selloff.

Despite the technical caution, ADA’s fundamentals and chart still suggest a viable path toward $1. However, with increased exchange inflows, bearish sentiment in derivatives, and weakening volume indicators, smart money appears to be betting on a controlled consolidation period. This brief cooldown may ultimately be beneficial, allowing the market to gather enough momentum to break through the $1 level with stronger conviction [1].

Source: [1] Cardano Price Could Hit $1, but Smart Money Bets on a Brief Cooldown First (https://coinmarketcap.com/community/articles/689a263c2bf5ec32de19ae26/)