What to know:
- ADA price retests a rising trendline as buyers defend the bullish recovery structure.
- Cardano could target $0.45 if bulls maintain support and reclaim key resistance levels.
- 120 million ADA has been approved for DeFi liquidity, potentially strengthening ecosystem activity.
Cardano (ADA) is retesting a key rising trendline after a bullish breakout, with buyers seeking to preserve the recovery structure for the ADA price. Meanwhile, a newly approved DeFi liquidity proposal could strengthen ecosystem activity and participation, potentially supporting broader ADA momentum if the trendline continues to hold.
At the time of writing, ADA is trading at $0.1776 with a 24-hour trading volume of $121.75 million and a market capitalization of $6.49 billion. Despite the signs of stability over the last 24 hours, the ADA price structure and DeFi growth point to a bullish reversal ahead.
Source: CoinMarketCap
Also Read: ADA Price Prediction: ADA Eyes $0.22 as PRIME Approval Boosts DeFi Growth
ADA Price Eyes $0.45 After Bullish Trendline Retest
According to the crypto analyst The Boss, the ADA price has returned to a key rising trendline after breaking out from a rounded-bottom formation above major support.
The recent pullback is testing whether buyers can preserve the higher-low structure. Holding this trendline would strengthen the bullish setup, while a breakdown could weaken momentum and place the underlying support zone under renewed selling pressure.
Source: The Boss’ X Post
The momentum indicators may point out the next movement of the ADA price because both RSI and MACD seek to confirm the return of buying power, whereas ADX may indicate if the trend becomes sustainable.
If bulls manage to defend the trend line and break above the resistance levels, ADA may be seen heading toward $0.2242, $0.3136, $0.3825, and $0.4488.
Cardano Approves 120M ADA DeFi Liquidity Boost
The data from Crypto.news further highlighted that Cardano’s decentralized representatives (DReps) have approved the proposal to allocate 120 million ADA to ensure liquidity in the decentralized finance ecosystem of its network.
The approval took place after getting the necessary two-thirds supermajority. This move will go a long way in making sure that there is more capital in decentralized apps.
This move is indicative of Cardano’s emerging model of community-based governance, which necessitates the presence of adequate representation for making significant decisions regarding the treasury.
Now that this proposal has been approved, the question remains on how to utilize the allocated 120 million ADA in order to bring more players into DeFi.
What Comes Next for ADA?
The ADA price’s further actions will be determined by whether the buyers defend the uptrend line and preserve the bullish pattern.
A successful correction may lead to price movement towards $0.2242 and even further resistance levels, which is $0.45. On the other hand, the use of 120 million ADA can increase the liquidity in DeFi.
Also Read: ADA Price Could Rally to $0.195 as 2.5M ADA Catalyst Fund Boost Outlook
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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