Cardano (ADA) traded near $0.224 on Friday, marking a strong week of upward movement following gains across major support levels. The digital asset climbed 17% over the past seven days, supported by growing on-chain activity and a surge in purchases by large wallet holders.
Analysts see breakout potential
Technical analysts on X have turned positive on ADA’s price potential. One market commentator projected that Cardano could rally as high as $2.92—representing nearly 14 times its current value—if bullish momentum persists. This optimistic outlook follows ADA’s continued testing of key resistance areas throughout the week.
Commentator Sssebi shared their views on social media, stating that ADA’s persistence at resistance levels increases the probability of a breakout. As ADA traded within these zones, Sssebi emphasized the coin’s resilience and ongoing optimism among traders.
$ADA is showing persistence at resistance levels. The longer it remains in this range, the greater the potential for a breakout, according to market observers.
DEX activity and on-chain data signal growth
Blockchain analytics provider DeFiLlama reported a dramatic surge in decentralized exchange (DEX) trading on the Cardano network. Within a 48-hour period, trading volumes soared from $2.01 million to $7.28 million, signaling heightened user engagement and investor interest.
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AAPLSantiment, an analytics firm specializing in blockchain data, indicated that Cardano wallets holding between 1 million and 10 million ADA collectively purchased an additional 60 million tokens starting Sunday. This wave of accumulation from large holders provided consistent upward price pressure during the week.
The total value locked (TVL) in Cardano’s decentralized finance (DeFi) ecosystem increased notably as well, rising from 268.47 million ADA on August 28 to 299.81 million ADA. The blockchain is also set to integrate DeFi platform RealFi on October 1, aiming to further expand its decentralized finance offerings.
Mini dictionary: RealFi, short for “Real Finance,” is a DeFi platform that aims to connect real-world assets and financial activities to blockchain-based decentralized protocols.
Derivative market analytics from CoinGlass showed a long-to-short ratio of 1.10 for ADA, approaching the month’s high. Futures funding rates turned positive at 0.0087% on Friday, reflecting an overall bullish bias among leveraged traders.
| Metric | Value | Change/Timeframe |
|---|---|---|
| Price (ADA) | $0.224 | +17% past 7 days |
| DEX Volume | $7.28 million | Tripled in 48 hours |
| Large Holder Accumulation | 60 million ADA | Since Sunday |
| TVL | 299.81 million ADA | Increase of 31 million ADA since Aug 28 |
| Long/Short Ratio | 1.10 | Highest in a month |
| Funding Rate | 0.0087% | Friday |
Technical indicators show bullish setup
Cardano is trading above both its 50-day and 100-day exponential moving averages (EMA), although it remains slightly below the 200-day EMA. The relative strength index (RSI) stands at 64, suggesting firm bullish momentum without entering overbought territory. The MACD technical indicator recently crossed into mildly positive territory as well.
Key resistance is identified at the 61.8% Fibonacci retracement near $0.231 and $0.236, while the 200-day EMA stands at around $0.245. Immediate support lies at $0.213 with additional stability provided by the 100-day EMA at $0.198.
Despite positive breadth in multiple metrics, total stablecoin market capitalization on Cardano has contracted slightly from $67.95 million to $63.97 million, according to DeFiLlama.
ADA is currently above mid-term moving averages, but technical analysts highlight ongoing resistance near $0.231 as a key marker for future momentum.
Continued accumulation by large holders, combined with rising DEX activity and a favorable derivatives outlook, has contributed to positive sentiment throughout the Cardano ecosystem.
