Cardano (ADA) Kicks Off Trading at $0.74, with the 24-hour Upper Wick Pressing Against the 7-day Average

After a three-day consolidation, ADA's price action remained subdued, stalling around $0.75, even as Ethereum and Solana rallied past $2,500 and $170, respectively.

Cardano (ADA) kicked off trading on Monday, May 14, at $0.74, with the 24-hour upper wick pressing against the 7-day average. As market chatter took a bullish turn after Cardano Founder Charles Hoskinson confirmed speculations about a DeFi partnership with Litecoin, investors grew optimistic.

Will Social Sentiment Fuel ADA’s Price Action?

After a three-day consolidation, ADA’s price action remained subdued, stalling around $0.75, even as Ethereum and Solana rallied past $2,550 and $170, respectively.

Adding to the lukewarm sentiment, ADA’s 24-hour trading volume slid from $934 million on Friday to $620 million on Monday, indicating a decline in market activity. However, on-chain data suggests that Hoskinson’s latest announcement could potentially spark a recovery for ADA in the days ahead.

DeFi Collaboration Confirmed: Cardano Founder Speaks Up

Charles Hoskinson has officially confirmed the speculation about a strategic DeFi collaboration with Litecoin. Over the weekend, buzz intensified after several posts on X (formerly Twitter) referenced Hoskinson’s past interest in integrating Litecoin into Cardano’s DeFi ecosystem.

In response to a viral tweet from Angry Crypto Show, Hoskinson hinted at closer ties with Litecoin, stating:

“Love the Litecoin community and have known Charlie and Bobby for over a decade. Great community!”

This comment suggests that development efforts could soon focus on integrating Litecoin into Cardano’s DeFi network, potentially through its upcoming privacy protocol, Midnight. Such a move would mark a rare cross-chain bridge between two of the longest-standing Layer-1 blockchains, with implications for multi-chain liquidity and broader DeFi adoption.

How Could Cardano-Litecoin Partnership Affect ADA in 2025?

ADA, ranking ninth by market cap, has outperformed several peers on a monthly basis. Analysts believe a DeFi-enabled Litecoin bridge could attract institutional investors, enhance liquidity, and boost developer interest.

If the Litecoin-Midnight-Cardano integration launches as expected in late 2025, ADA could experience a surge in demand heading into Q4. Historically, major protocol upgrades like Shelley and Alonzo have driven significant price gains for ADA.

Technically, a breakout above $0.78 and subsequent flip into support could open the door for a rally toward $1.00 in the short term. In a bullish scenario, ADA could even target $1.40 by the end of 2025, fueled by successful DeFi integration with Litecoin.

Technical Analysis: ADA Holds Firm at $0.72 Support

Despite broader market uncertainty, Cardano is maintaining a cautious rebound, holding above the $0.72 support. Currently, ADA is trading near $0.74, just above the 50-day moving average of $0.7199 — a level that has acted as a reliable short-term floor since early May.

The 7-day simple moving average at $0.7702 is the next resistance level to watch. A daily close above this mark could reignite bullish momentum.

Meanwhile, the Parabolic SAR flipped bearish on May 17 and continues to hover above the current price at $0.8558, signaling caution for momentum traders.

Still, with low selling pressure and muted volume delta readings, ADA appears to be in a technical cool-down rather than entering a prolonged decline.

If Bitcoin remains stable above $104,000, risk-on sentiment could flow back into altcoins like ADA, potentially setting up a retest of the $0.78 level. Conversely, a daily close below $0.7199 could open the door for a further drop toward the 100-day SMA support at $0.6859.