Cardano Reverses Slump, Rallies 267% Above $0.90 on Bullish Signals

Cardano (ADA) slumped from its November peak, falling over 55% to around $0.587 as ecosystem metrics weakened. DeFi TVL dropped 15% in 30 days to $324 million, with just eight dApps holding more than $10 million each. Stablecoin supply on Cardano stalled at $30 million, and native stablecoins Moneta, Anzens and Djed briefly depegged to $0.98. Major stablecoins USDT, USDC, PYUSD and RLUSD also bypassed the network, while DEX volume reached only $99 million over 30 days. Development continued on Leios (parallel processing) and Midnight (ZK-proof privacy layer-2), but traction remained limited as emerging chains Sui (SUI), Sei (SEI) and Berachain overtook Cardano’s DeFi TVL. Since its 2022 lows, ADA has rallied 267%, breaking above the $0.90 resistance and reclaiming key moving averages. Technical indicators—including a completed Elliott Wave corrective pattern and a move above the 50- and 100-day MAs—signal a bullish reversal. Rising trading volumes confirm growing market participation. Historical cycles show ADA’s performance closely tracks Bitcoin (BTC), suggesting that Bitcoin strength could fuel further gains. Analysts project a potential 383% upside to the $3.10 all-time high if momentum holds. Traders should monitor on-chain metrics and Bitcoin’s trend, use prudent risk management such as stop-loss orders and position sizing, and stay alert for broader market swings or regulatory shifts.