Cardano ADA Faces Short-Term Pressure But Ecosystem Growth Signals Long-Term Potential

Cardano’s native token ADA has recently faced selling pressure, dropping below a critical technical support level at $0.714 (50-day moving average) to trade at $0.6915 as of June 4, 2025. While this breach suggests potential further declines toward $0.60 in the short term, the Cardano ecosystem continues to demonstrate robust growth fundamentals. This divergence between price action and network development presents an interesting dynamic for investors - short-term volatility masking long-term potential as Cardano’s technical infrastructure expands despite market headwinds.

Cardano (ADA) Faces Selling Pressure Amid Ecosystem Growth

Cardano’s native token ADA has dropped below a critical technical support level, signaling potential further declines. The cryptocurrency fell 4.08% to $0.677, breaching the 50-day moving average at $0.714. Market observers note that sustained trading below this level could push ADA toward $0.60 before finding substantial buying interest.

Despite price weakness, Cardano’s ecosystem continues expanding at a remarkable pace. The network now hosts 2,002 active projects, with recent milestones including the bridging of Bitcoin Ordinals via BitVMX. Development activity remains robust, with over 134,000 Plutus scripts and 6,800 Aiken scripts deployed to date.

The path to recovery appears challenging. ADA must first reclaim $0.74, then overcome resistance at the 200-day moving average of $0.826 to potentially target the psychologically important $1.00 level. Network metrics show resilience, with delegated wallets growing to 1.33 million and active governance participants increasing slightly.

Cardano Founder Denies Allegations of Unauthorized Token Control Amid Community Dispute

Cardano’s ecosystem faces turbulence as founder Charles Hoskinson refutes explosive claims of manipulating the blockchain’s ledger. The allegations, spearheaded by NFT creator Masator Alexander, suggest Hoskinson redirected $600 million in ADA tokens during the 2021 Allegra update without community consent—a charge he attributes to a smear campaign by DeFi protocol Optim Finance.

The controversy coincides with a 38% crash in Optim’s native token O following Hoskinson’s public disassociation. While ADA maintains its position as a top-10 cryptocurrency, the network continues to grapple with stagnant DeFi growth—a stark contrast to its market capitalization.

Cardano Shows Bullish Reversal Signs Amid Market Uncertainty

Cardano’s ADA has rebounded to test resistance at $0.69, flashing a technical buy signal despite declining DeFi TVL. The cryptocurrency found support at $0.65 before reversing upward, suggesting potential for further gains toward the $1.00 level.

Derivates market interest in ADA is growing, with Open Interest rising 2.2% to $831 million over 24 hours. Trading volume remains robust above $1 billion, indicating sustained trader engagement.

The recovery comes against a backdrop of broader market consolidation and macroeconomic tensions. Uncertainty surrounding US tariff policies has created volatility, though Cardano’s bullish structure appears intact.

Cardano ADA Price Forecast: When Can it Hit $1.25?

Cardano’s ADA has faced a challenging quarter, shedding 20% of its value over three months. Yet, analysts detect emerging bullish signals amid whale accumulation and robust network metrics. The altcoin now flirts with the possibility of a Q3 resurgence, potentially eyeing the $1.25 threshold last seen during spring’s unrealized rally.

Network fundamentals tell a compelling story—110.09 million transactions processed, 22 billion ADA staked across 2,992 active pools. This bedrock of community trust contrasts with recent price underperformance. Meanwhile, Grayscale’s proposed cardano ETF enters a critical SEC review phase, with approval potentially serving as the catalyst for ADA’s next leg up.

Market observers like Mr. Banana suggest late summer could mark ADA’s return to form. The confluence of institutional interest through ETF prospects and steadfast retail participation creates fertile ground for price recovery. While $1 remains the immediate psychological barrier, the path to $1.25 appears increasingly plausible should macro conditions align.