Cardano Rises 3.5% as Midnight Airdrop and Treasury Fuel Optimism

Cardano (ADA) has surged 3.5% in the last 24 hours, reaching $0.7513, driven by excitement over the upcoming Midnight airdrop and a $71 million development fund. The airdrop, set to distribute 24 billion NIGHT tokens—50% of which will be allocated to ADA holders at a 1:0.34 ratio—has engaged over a million eligible wallets. The event, combined with a significant treasury boost, is generating renewed investor optimism [1].

Analysts have pointed to emerging bullish technical patterns as a potential precursor to a breakout. Market analyst Smith highlighted a long-term cup and handle formation on ADA’s chart, a pattern that began in 2022. Resistance levels between $0.90 and $0.93 are now in focus, with a breakout expected to trigger a rally toward $4 [1]. Smith also noted that ADA has been consolidating between $0.60 and $0.90 for over a year, a period that has allowed whales to accumulate while weaker positions were liquidated. A clean breakout above $0.93 with strong volume could attract short-term traders and accelerate upward movement [1].

On the daily chart, ADA is forming the right side of a rounded base, rebounding from support at $0.6943 and approaching key resistance levels. The Stochastic RSI has crossed into bullish territory from the oversold region, which is typically a precursor to strong price movements near critical support or resistance [1].

The $71 million community-approved treasury fund is another significant catalyst, earmarked for upgrades including enhanced transaction throughput, cross-chain integration, and better developer tools. These developments are expected to strengthen Cardano’s position in the competitive blockchain space [1].

Market metrics also support a bullish outlook. Santiment data shows that ADA’s Open Interest has recovered to $215 million, indicating increased trading activity. Social dominance has climbed to 1.65%, reflecting growing community engagement and visibility, which often precede price surges [1].

With technical indicators aligning, the Midnight airdrop capturing investor attention, and a strong development fund backing future upgrades, ADA appears poised at a pivotal moment. If the $0.93 resistance is overcome with strong buying pressure, the path to $1.15—and potentially $4—may not be as distant as previously anticipated [1].

Source: [1] Midnight Airdrop Sparks ADA Buying Spree—Is $4 Closer Than You Think? (https://coinmarketcap.com/community/articles/68920bfd7c289c157e5799fa/)