Cardano (ADA) Holds Above $0.66 as Whale Activity

Cardano steadies above $0.66 as whale activity rises and technical signals hint at a potential breakout, fueled by a groundbreaking Bitcoin interoperability milestone.

Zagham Abbas
May 7, 2025
2:15 pm

Zagham Abbas

Zagham is a renowned crypto journalist known for his insightful analysis and in-depth reporting on the cryptocurrency industry.

Cardano (ADA) holds above $0.66 despite recent market pressure, signaling potential consolidation and accumulation.
Technical indicators show mixed sentiment, with hidden bullish divergence and tightening Bollinger Bands suggesting weakening downward momentum.
On-chain whale activity has surged, with large transactions indicating renewed institutional interest and possible accumulation.

Cardano (ADA) is showing notable signs of resilience as it trades steadily around $0.66, despite facing strong market pressure and a sharp decline in early May. After dipping to a low of $0.6541, the ADA price has managed to hold above a crucial support level. Although the token is down by 2.43% in the past 24 hours, traders and analysts are now watching this consolidation zone for signs of a potential recovery.

Over the past several days, ADA has remained range-bound between $0.6692 and $0.6936. This narrow trading band suggests a period of low volatility, possibly indicating accumulation. Historically, such consolidation patterns near key support levels often precede a breakout.

According to technical analyst Ali Chart, ADA was recently rejected at the upper boundary of a descending channel, which may signal a short-term pullback toward the $0.60–$0.54 range. Still, ADA remains above the critical 0.618 Fibonacci retracement level near $0.739, a level commonly known as the “golden pocket,” where trend reversals frequently occur.

#Cardano $ADA was rejected at the top of its descending channel, potentially setting up a move toward $0.63, or even $0.54 if pressure persists. pic.twitter.com/esZYWPpZbM
— Ali (@ali_charts) May 6, 2025

Technical indicators currently reflect mixed sentiment. The MACD remains neutral near the zero line, and the Relative Strength Index (RSI) is also hovering in a balanced range. However, hidden bullish divergence is beginning to emerge, as ADA prints lower lows on the chart while momentum indicators form higher lows.

Cardano Price Primed for Rally

This divergence often precedes a bullish move, suggesting the downward momentum may be weakening. Additionally, Bollinger Bands have tightened around the current price zone, and subtle green candle tails with increasing volume hint that buyers could be returning.

Supporting this technical outlook is a surge in on-chain activity. In April 2025, Cardano experienced a spike in large transaction volumes, those exceeding $100,000, signaling renewed interest from whales and institutional investors. While overall whale volume declined from a peak of $9.12 billion in December 2024 to $7.46 billion in April, this reduction may represent a consolidation phase rather than exit activity. Analysts suggest keeping a close eye on upcoming whale volume patterns to determine whether current movements reflect accumulation or distribution.

Historical trends reinforce this narrative. Similar large transaction spikes in early 2021 were followed by substantial ADA price rallies. With resistance levels at $0.70, $0.78, and $0.88, and long-term support holding at $0.60, market observers are looking for any catalyst that could propel the Cardano price toward the $1.00 mark.

Cardano Strengthens as Bitcoin Moves On Chain

One such catalyst may already be in play. In a significant milestone for blockchain interoperability, developers from BitcoinOS have successfully transferred Bitcoin to a Cardano wallet and back without relying on a bridge, third-party service, or custodial entity. This bridgeless transaction represents a major innovation, allowing Bitcoin to interact directly with Cardano’s ecosystem while maintaining full user control over private keys.

Industry experts believe this development could accelerate the adoption of Cardano-based decentralized applications (dApps), particularly in areas like decentralized identity, governance, and cross-chain finance.

The broader market is now closely monitoring ADA’s next move. With price action stabilizing above a key accumulation zone and bullish technical structures developing, Cardano could be preparing for a larger breakout. If trading volume continues to rise and momentum indicators confirm strength, ADA may soon test higher resistance levels and potentially reclaim the $1.00 psychological threshold in the coming weeks.