Cardano (ADA) Gains 6.6% Weekly, Market Cap Surpasses $21 Billion

Cardano (ADA) is currently trading at $0.58, reflecting a 6.6% gain over the past week and pushing its market cap over $21 billion. However, the broader picture remains mixed, with ADA down 11.9% over the past 30 days and trading nearly 50% below its $1 peak from March 3. Despite multiple attempts by bulls to revisit this level, each effort has fallen short.

Market analysts are eyeing July as a potential turning point, with bullish sentiment slowly returning across the broader crypto market heading into Q3. The next major resistance level for ADA is $0.70, and a successful breakout above this zone could open the door to a renewed push toward $1, particularly if macro conditions and liquidity flows continue to improve.

One notable catalyst that could support renewed investor interest is Cardano’s expansion efforts beyond its traditional DeFi and staking focus. On July 8, the Cardano Foundation announced Reeve, a new enterprise-grade financial reporting platform built on the Cardano blockchain. Reeve allows institutions to publish tamper-proof financial data directly on-chain, offering a transparent and audit-ready solution that integrates with existing accounting systems. Such enterprise-focused developments could strengthen Cardano’s fundamental narrative, especially among institutional allocators eyeing scalable blockchain infrastructure.

From a technical standpoint, ADA has formed a falling wedge pattern on the daily chart, a formation that typically suggests a trend reversal is nearing. Momentum indicators such as MACD and RSI have both begun to trend upward, signaling a gradual shift in sentiment from selling to buying pressure. A confirmed breakout above the upper band of the wedge at $0.6053 would be the first bullish trigger, with $0.73 emerging as the next key resistance, representing a 25.8% upside from current levels.

However, this optimistic scenario hinges on ADA maintaining its critical support level at $0.54. A breakdown below this level could negate the bullish setup entirely. Additionally, whale wallets have reportedly offloaded over 170 million ADA in the past two weeks, suggesting reduced confidence among large holders. This kind of smart money outflow typically indicates expectations of short-term weakness and may continue to act as a headwind for any short-term rally.

Unless bulls manage to reclaim control and flip $0.73 into support, a sustainable move toward $1 in the short term remains unlikely. Conversely, if ADA loses its grip on the $0.54 support zone, it could trigger a deeper pullback to $0.50 or even retest the wedge base near $0.44, where stronger buyer interest may eventually return.

Cardano's price is currently approaching a key resistance level, with the cryptocurrency's value hovering around $0.73. This level is crucial for bulls, as reclaiming control and flipping it into support could pave the way for a sustainable move toward $1 in the short term. However, if this resistance holds, the upward momentum may stall, making it unlikely for ADA to reach the $1 mark anytime soon.

The recent surge in Cardano's on-chain activity, with over 111 million transactions, indicates growing use and developer interest. This increased activity often signals long-term price appreciation, as more users and developers engage with the network. Additionally, the total crypto market cap currently sits at $3.35 trillion, with Bitcoin recently trading above $108,000. This broader market optimism could create a favorable environment for altcoins like Cardano.

Technical analysis suggests that ADA is showing signs of upward momentum, with the price recently bouncing from around $0.565. The cryptocurrency is currently trading above its 100-hour moving average, which is often a bullish signal. If this trend continues, ADA could be on its way toward the $0.67 to $0.70 zone. However, the key resistance level at $0.73 remains a significant hurdle for bulls to overcome.

The upcoming Midnight Token Distribution, or the Glazer Airdrop, has the potential to attract renewed attention to Cardano. Holders will receive tokens like Night and Dust, and while the exact value of these tokens is yet to be seen, the airdrop could generate fresh interest in the cryptocurrency. Eligible holders must claim the airdrop manually, or they’ll miss out on this opportunity.

Whale activity is another strong bullish signal for Cardano. Large ADA holders have resumed accumulating the token, especially as it bounces from support. This behavior often reflects institutional confidence and smart money positioning for a long-term move. When whales buy and hold, it tends to validate retail investor interest and bring additional price strength.

The broader crypto market is also showing signs of optimism, with discussions of a Federal Reserve pivot and broader money printing on the table. This could create a favorable environment for altcoins like Cardano. However, it is important to note that nothing is guaranteed in the crypto market, and investors should always do their own research.

In the long term, some analysts believe that Cardano could reach as high as $60 if it captures a significantly larger share of the DeFi market and sees massive user growth. However, this is clearly speculative and based on what might happen if Cardano achieves large-scale adoption. At the moment, Cardano’s DeFi total value locked (TVL) is around $251 million, compared to Solana’s $8.6 billion. This indicates that there is clear room for expansion in the Cardano ecosystem.

In conclusion, Cardano's price is currently at a critical juncture, with the cryptocurrency approaching a key resistance level. While there are several bullish signals, including increased on-chain activity, whale accumulation, and the upcoming airdrop, the $0.73 resistance level remains a significant hurdle for bulls to overcome. If ADA can reclaim control and flip this level into support, a sustainable move toward $1 in the short term remains possible. However, investors should always do their own research and be aware of the high volatility in the crypto market.