Cardano Holds $0.72 — Can It Break Out Toward $0.92?

Key Insights:

• ADA defends $0.72 support amid rising whale interest.
• Liquidation pressure builds near $0.786 resistance level.
• Hoskinson confirms upcoming DeFi integration with Litecoin.

Despite broader market uncertainty, Cardano (ADA) is trading around the $0.72 support level. Open interest has fallen 3.64% to $862.42 million, but trading volume has risen 30.64% to $1.87 billion. Options trading volume is down 92.94% at $6.59K.

This divergence means that while spot market activity is increasing, derivative interest remains low. Binance’s long/short ratio currently stands at 0.9164, while the accounts long ratio is 2.9635, suggesting a retail bullish bias.

Cardano Price Action and Technical Analysis

The price of ADA has stayed within an upward price channel that started forming in mid-April. Now, it is trading just above a key support trendline at $0.72. Should ADA rebound from this level, it could retest $0.78, which is a cluster of previous price highs.

This may be where this area acts as near-term resistance before any move towards the upper part of the channel, near $0.84 and possibly $0.92.

However, Ichimoku chart has broken below the cloud and the future cloud is bearish. On the 4 hour chart, the MACD is showing momentum is negative, the MACD line is below the signal line and the histogram bars are red. The bars are shrinking, which may show bearish pressure is slowing down.

The combination of these technical factors indicates a market that could breakout, but confirmation is still needed. If the price can’t hold above $0.72, it may be headed to $0.70 or lower on short-term weakness.

Smart Money Behavior and Whale Activity

On the bullish case, according to data from Santiment’s blockchain tracking, large ADA holders or whales, bought more than 80 million ADA in just the last two days. They have between 1 million and 10 million ADA and have been buying even in price pullbacks.

This suggests that these holders believe the current prices are undervalued or suitable for medium term entry. During this accumulation, prices were oscillating between $0.74 and $0.76 and the inflows suggest that some buyers are preparing for an upward breakout.

Meanwhile, a decrease in open interest while volume rises could indicate that traders are reducing their exposure and buying spot. This is a risk-off stance from leveraged traders, as opposed to the growing confidence of large holders.

Additionally, Coinglass also reported that ADA has a key short liquidation zone at $0.786 with over 22.88 million ADA in exposed positions. Above this price, a push could result in rapid short squeeze, which would accelerate the gains.

On the flip side, a cluster of long positions around $0.711 could get liquidated if ADA were to fall below $0.72, with weaker hands in the market.

New Partnership With Litecoin Fuels DeFi Hopes

The founder of ADA, Charles Hoskinson, has added to ADA’s broader momentum with a new development. On May 18, 2025, he confirmed on X (formerly Twitter) that Cardano is aiming for a DeFi partnership with Litecoin. This comes after crypto analysts and the wider community have been speculating on the news.

The Angry Crypto Show posted a viral post suggesting that Litecoin’s community and branding made it a strong candidate for Cardano’s DeFi integration.

In response, Hoskinson said, “Love the Litecoin community and have known Charlie and Bobby for over a decade.” Great community!”

This reply also confirms talks and increases the chances of Litecoin being added to Cardano’s ecosystem through Midnight, Cardano’s privacy and identity protocol. If it were to be realized, it would allow for cross-chain DeFi activity between Cardano and Litecoin, another use case for ADA.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.