Cardano Drops 3.5% Amid Mixed Signals, Supply in Profit Soars 18.23%

Cardano, the tenth-largest cryptocurrency by market capitalization, is currently valued at $0.58. The cryptocurrency has experienced persistent price declines over the past few weeks, struggling to climb above $0.5. However, recent analysis suggests that the ADA price has reached a significant bottom and now faces major hurdles ahead. If these hurdles are crossed, the price could potentially climb toward $0.65.

Crypto analyst InvestingHaven on X highlighted that the ADA price has reached a key support level at $0.5, forming a triple bottom pattern. This pattern indicates strong demand at the support level and suggests that sellers are losing momentum, which could lead to a potential price reversal or breakout to the upside. The triple bottom formation also implies that buyers are committed to defending the $0.5 support, potentially signaling that the Cardano price downtrend is losing momentum. InvestingHaven emphasized that the ADA price action remains constructive as long as its multi-week trendline holds firm. According to the analyst, breaking above the $0.81 retracement is crucial for ADA to flip to a whole new local high, which could set the stage for a bullish 2025.

Amid the latest price shift, the price of Cardano dropped 3.5% over the past 24 hours, delaying the falling channel breakout. Meanwhile, data revealed that the Cardano supply in profit soared to 18.23 billion ADA on Friday, June 4, 2025. This marks a substantial increase from the 15.89 billion ADA recorded at the start of the week, indicating a 2.34 billion increase in July. This rise in total supply often occurs when the price of a token increases, resulting in a profit. This implies more holders are in a profitable position and can reflect growing bullish sentiments among traders. However, some holders might take profits if the ADA price rises significantly, posing a risk of increased selling pressure for Cardano.

As of this writing, the ADA price was trading at $0.58, with a market capitalization of $20.6 billion. Cardano market activity has decreased, as indicated by the trading volume. Over the last 24 hours, the trading volume decreased by 42.3% to $638 million. The ADA technical analysis revealed mixed signals. The Moving Average Convergence/Divergence (MACD) indicator rallied from the zero line towards the green bars, suggesting that the momentum is shifting bullish. However, the MACD and signal line remain deep in the negative zone, implying room for growth before turning into a flashing trend reversal signal. Meanwhile, the Relative Strength Index (RSI) sat at 47, reflecting a struggle to regain bullish momentum. On the downside, the ADA price could decline toward $0.5419 if it marks a daily close below Thursday’s opening price of $0.5840. However, the uptrend could target $0.65 if ADA holds a bullish close to the day.

Despite the latest Cardano price consolidation, July appears favorable for the coin, based on historical trends. Input Output Global also recently unveiled new updates on Cardano. The blockchain introduced a new property-based testing tool designed to help developers find hidden flaws. This development could further bolster the confidence of investors and traders in the Cardano ecosystem, potentially contributing to a bullish outlook for the cryptocurrency.