Cardano (ADA) Shows Resilience Amid $1.05 Billion Liquidation Wave

During a $1.05 billion liquidation wave, Cardano (ADA) was the only top-50 cryptocurrency to show gains. After initially dipping 11% below $1.00, ADA stabilized between $0.89 and $0.91, indicating strong buyer support.

Bitcoin fell from its all-time high of $124,128 to around $118K–$119K, while broader macroeconomic pressures affected risk assets. Analysts suggest ADA's resilience enhances its bullish outlook.

Cardano (ADA) Technical Analysis

Market analyst Ali Martinez reports that ADA has broken out of a descending channel since December 2024, potentially signaling a 70% increase toward $1.50. Other analysts foresee targets of $1.80 before reaching multi-dollar highs.

  • Key support is now between $0.80 and $1.00.
  • A close above $1.02 could confirm further upward movement.
  • Possible upside targets include $1.20, $1.50, and $3.10 in a multi-month rally.

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On-Chain Activity and Institutional Interest

  • Daily transactions for ADA surged to 2.6 million, with low fees of $0.12 supporting mass adoption.
  • The ADAV2 upgrade introduces zero-knowledge smart contracts and Hydra scaling, attracting enterprise interest.
  • Grayscale increased ADA’s allocation in its Smart Contract Platform Ex-Ethereum Fund to 20%, while the SEC is reviewing an ADA ETF, which could lead to significant inflows.

Conclusion

With technical breakouts, strong on-chain metrics, and rising institutional interest, ADA may be positioned for a substantial rally in 2025 if current support levels hold.