Cardano (ADA) Faces Critical Price Juncture: Testing Resistance at $0.65 or Correction Toward $0.55?

As of April 2025, Cardano’s ADA finds itself at a pivotal technical crossroads, with traders closely monitoring whether the digital asset can sustain momentum to breach the $0.65 resistance level or succumb to bearish pressure for a retest of $0.55 support. Market analysts highlight converging indicators from Bollinger Bands and RSI that suggest growing volatility in ADA’s price action. The asset’s ability to hold above its 200-day moving average could determine its near-term trajectory, while on-chain metrics reveal mixed signals in network activity and whale accumulation patterns. This tension between bullish and bearish factors creates a high-stakes scenario for swing traders and long-term holders alike.

Source: TradingView

Furthermore, ADA reclaimed both the 9-day and 21-day moving averages, with both sitting at $0.6252 and $0.6263 respectively. Such a reclaim often precedes trend continuation, especially when paired with tight ranges. 

A decisive breakout above the upper boundary may project a rally towards $0.81, while a breakdown below the ascending base could help the crypto revisit the $0.46-range.

Are Cardano whales retreating as retail interest climbs?

Ownership data highlighted a steady shift from large holders to smaller participants. In the last 30 days, whale wallets trimmed their ADA exposure by 1.68%, while investors expanded holdings by 1.60%. Simultaneously, retail ownership edged higher by 0.72%. 

This trend suggested growing interest from grassroots participants, even as large holders seemed to be cautious. Historically, such retail-led environments tend to amplify post-breakout momentum. Particularly when confidence spreads across broader market segments.

Source: IntoTheBlock

Is address growth a signal of growing network traction?

On-chain activity showed a sharp uptick in participation. Over the past 7 days, new addresses climbed by 4.79%, while active addresses surged by 11.99%. Additionally, zero-balance addresses ROSE by 12.26%, pointing to intensified network churn. 

These metrics indicated rising transactional activity and user engagement – Factors that often precede or accompany significant price volatility. As more users return to the network, market responsiveness to directional moves increases.

Source: IntoTheBlock

Are rising volumes masking uncertainty in derivatives markets?

Finally, in the derivatives segment, Cardano saw a notable 67% spike in trading volume, reaching nearly $987.5 million. Open Interest also rose modestly by 3.04% – A sign of growing speculative positioning. 

However, the Options market told us a different story – Volume collapsed by 92.94%, and Open Interest dipped by 0.27%, reflecting traders’ reluctance to commit to long-dated strategies.

This divergence alluded to short-term confidence, but long-term hesitancy, emphasizing the market’s cautious anticipation of the breakout.

Source: Coinglass

Will ADA’s triangle resolve with strength or surrender?

In light of rising retail activity, the hike in network engagement, and surging short-term volumes, ADA might be ready to make a bold move soon. 

However, the muted Options market reflected caution under the surface. Whether Cardano breaks to the upside or crumbles through the support, the breakout will likely carry enough momentum to define its next directional trend.