Categories: News

Cardano Price Prediction: Can ADA Reach $1.00 if DeFi Hype Fuels Breakout

Key Insights:

  • Cardano price opened at $0.74 on May 19, testing the 7-day average amid DeFi’s partnership talks with Litecoin.
  • ADA’s 24-hour volume fell from $934M on Friday to $620M on Monday, reflecting lower market activity.
  • Cardano must hold $0.72 support and break $0.78 to target $1.00 amid DeFi integration speculation.

Cardano price opened at $0.72 but rallied over 3% to a $0.75 intraday high before dipping slightly. It tested the 7-day moving average after discussing a potential DeFi partnership with Litecoin.

Additionally, the 24-hour volume dropped from $934 million on Friday to $620 million on Monday, indicating a slower trading period. In Cardano price prediction, the top crypto has to stay above $0.72 and break $0.78 to reach $1.00.

Cardano Price Tests 7-Day Average as Market Volumes Dip

At the beginning of the week, ADA was trading at $0.74 and was almost level with the 7-day SMA. The 24-hour trading volume dropped from $934 million on Friday to $620 million on Monday.

This suggested reduced buying and selling. Consequently, this indicated traders were holding back, waiting for ADA to indicate the market’s direction.

Cardano Price Prediction Chart | Source: TradingView

Despite a drop in trading volume, ADA remained above the important 50-day moving average at $0.7199.  For ADA to go bullish, it has to sustain its current level and pass the 7-day SMA at $0.7702. However, if this level is not reached, the asset might fall toward the 100-day SMA at $0.6859.

DeFi Collaboration Sparks Investor Optimism

The recent positive market sentiment is due to Charles Hoskinson disclosing ongoing talks about a DeFi partnership between Cardano and Litecoin. This collaboration could build a cross-chain link between two major Layer-1 blockchains.

Using Cardano’s Midnight protocol will likely improve the DeFi offerings and could help draw in additional liquidity to the network.

Source: X

Notably, there has been a lot of talk about this collaboration on social media. As a result, many users believe it could bring more demand for ADA from the DeFi space.

With greater optimism around ADA, its price could grow in the near term if development and market developments follow the same trend.

Cardano Price Prediction: Technical Levels to Watch for ADA Price Breakout

Further, regarding Cardano price prediction, the crypto has to overcome resistance at various crucial points to reach the $1.00 target. The initial challenge is $0.78, matching the 7-day SMA, and has recently rejected the higher price.

A successful breakout above this level could pave the way for ADA to reach the $0.85 level. If resistance shifts to support, ADA could regain enough strength to advance toward $1.00.

However, the Parabolic SAR indicator indicated a bearish trend as it was printed higher than the price at $0.85. This setup clarifies that ADA needs more volume to overcome its resistance barriers.

Broader Market Sentiment May Influence ADA Price

Cardano’s near-term price action will likely depend on broader crypto market trends, particularly Bitcoin’s performance. With Bitcoin trading near $104,000, market sentiment remains cautiously optimistic, providing a supportive backdrop for ADA.

However, if Bitcoin faces a correction, it could weigh on ADA’s ability to hold critical support levels. The top altcoin must maintain its position above $0.72 to avoid a deeper retracement toward the 100-day SMA at $0.6859.

A sustained break below this level could invalidate the current bullish setup, putting further downward pressure on the token. Cardano’s ADA has skyrocketed by over 111% in just 280 days.

This impressive surge has outpaced major tech players like Tesla, Nvidia, Microsoft, Apple, and Google. The chart showed ADA leading with intense volatility and repeated breakouts despite market pullbacks.

Source: X

While other assets remained under 25% gains, Cardano price maintained its uptrend, reflecting stronger relative momentum.

Analysts view this as a sign of rising investor confidence, especially amid DeFi expansion news. A sustained move above recent highs could validate a longer-term bullish continuation.

Ronny Mugendi

Ronny Mugendi is a seasoned crypto journalist with 4 years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies.

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Ronny Mugendi

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