TLDR: Cardano (ADA) Price Holds Steady Above $0.72 Despite Experiencing a 10% Drop Last Week

Cardano's price has been moving sideways around the $0.72 mark after experiencing a 10% drop last week. Despite this recent dip, several factors point to potential upward

Cardano’s price has been trading nearly flat at around $0.72 after slipping 10% last week.

Despite the recent pullback, several factors suggest the ninth-largest cryptocurrency by market cap could be poised for an upward move.

What Happened: Currently ranked ninth with a market cap of $23.5 billion, ADA has found support at the lower boundary of its upward trend channel, which has served as a safety net since mid-April.

At least one technical analyst, Ali Martinez, believes ADA could push towards $1 if it manages to stay above $0.72 and continues following the established trend channel.

“After reaching a high at 0.88, #Cardano pulled back but found strong support at the lower boundary of its ascending channel. If the current structure is an uptrend channel, then holding above 0.72 could pave the way for an. . . upswing towards 0.92,” the analyst explained.

Also Read: Benzinga's Guide To Cryptocurrency Taxes In 2025

Another interesting development is the confirmation of a Decentralized Finance partnership between Cardano and Litecoin.

Charles Hoskinson, the founder of Cardano, confirmed these rumors over the weekend, also adding that he has nosed the Litecoin community.

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

This partnership is expected to materialize through Cardano’s upcoming privacy-focused project, Midnight, in what would be a rare cross-chain bridge between two major Layer-1 blockchains.

Such a partnership could massively improve multi-chain liquidity and broader DeFi participation, ultimately increasing ADA’s utility and price on its journey to new highs later in 2025.

From a technical perspective, Cardano appears to be in a period of consolidation rather than a sustained decline.

The cryptocurrency is currently holding above the 50-day moving average of $0.7199, which has acted as a short-term support level since early May.

The next key resistance level is the 7-day simple moving average at $0.7702, with a daily close above this mark needed to regain bullish momentum. However, the Parabolic SAR indicator flipped bearish on May 17 and continues to print above the current price at $0.8558, signaling caution from momentum traders.

According to data from CoinGecko, trading volume for ADA has decreased from $934 million on Friday to around $620 million on Monday, as the cryptocurrency slides from a peak of $0.88 to the $0.72 range.

This reduction in volume reflects the typical weekend lull observed in cryptocurrency markets.

If ADA can manage to reclaim the $0.78 level and transform it into support, analysts suggest that it could potentially pierce through $0.85 and rally towards the $1 mark in the short-term.

In the long term, a fully functional DeFi ecosystem partnership with Litecoin could propel ADA as high as $1.40 by the end of 2025.

Another factor that could impact the price outlook for Cardano is the increasing regulatory interest in cryptocurrencies.

According to Polymarket, the probability of a Cardano spot ETF approval this year has surged dramatically from 45% to 64% in just 24 hours.

This sudden spike in probability reflects the growing anticipation among investors for Cardano to be included in the traditional financial markets, which would likely bring fresh capital into the ecosystem.

Market participants will also be following the broader cryptocurrency market trends, especially the price action of Bitcoin, which tends to influence the directional bias of ADA.

If Bitcoin manages to maintain its strength above the $104,000 level, it could provide enough impetus for ADA to retest the $0.78 mark in the near term.

On the other hand, a daily close below the 50-day SMA at $0.7199 could expose ADA to a deeper retracement towards the 100-day SMA support at $0.6859.