- Cardano (ADA) is showing signs of a bullish reversal, rebounding to $0.69 with growing trader interest and a SuperTrend buy signal, despite broader market uncertainty.
- However, the continued decline in DeFi TVL and bearish MACD signal suggest caution as ADA approaches key resistance at $0.70.
Cardano (ADA) is showing signs of a strong bullish reversal, rebounding to trade at $0.69 after defending key support at $0.65. This turnaround comes despite broader market consolidation and global economic uncertainties, including lingering fears over U.S. tariff rulings.
Cardano Flips the Script with Technical Bullishness
Last week’s market-wide sell-off pushed ADA to a critical support level at $0.65. However, a swift rebound has since taken shape, reinforced by a 2.2% increase in Open Interest to $831 million—indicating growing appetite among traders. The derivative volume staying above $1 billion further supports this bullish bias.
On Binance, the long-to-short ratio of 2.83 suggests that futures traders expect upside momentum to continue. Notably, liquidations show short positions ($394,000) outweighing longs ($198,000), hinting at a potential short squeeze that could accelerate ADA’s upward trajectory.
Also read: Google Gemini Predicts Bullish Twist for Cardano (ADA) by June 30, 2025 – Can It Hit $3?
SuperTrend Indicator Flashes Buy Signal
The SuperTrend indicator—known for tracking market volatility using the Average True Range (ATR)—has flipped green, flashing a buy signal as ADA trades above the SuperTrend line. This confirms a bullish technical structure and provides dynamic support for price movement.
Adding to this momentum, the Relative Strength Index (RSI) is attempting to climb back above the 50 midline. A break above the $0.70 resistance level could ignite stronger buying pressure, pushing ADA toward the psychologically important $1.00 mark.
Caution: DeFi TVL Continues to Slide
Despite technical optimism, Cardano‘s ecosystem shows signs of weakening. Its Total Value Locked (TVL) in DeFi has fallen to $317 million, down sharply from its May 11 peak of $414 million. This suggests reduced engagement and demand for ADA within DeFi protocols, which could dampen long-term price growth.
The Moving Average Convergence Divergence (MACD) still reflects bearish sentiment, issuing a sell signal on May 17. Traders are advised to monitor momentum indicators closely and proceed with caution.
Cardano’s bullish reversal is gaining traction, supported by growing trader interest and a fresh technical buy signal. However, the weakening DeFi fundamentals call for a balanced strategy—watch the $0.70 level closely as ADA fights to reclaim its bullish throne.