Will Cardano Price Be Back Over $3+ as Final Pullback Phase Nears End?

Key Insights:

• Cardano Price jumps from $0.52 to $0.59 as bulls retake control
• Cardano treasury surpasses 1.8B ADA with $100M stablecoin proposal
• ADA/BTC charts show signs of bottoming with 383% upside potential

Cardano (ADA) is showing renewed strength as the token climbs back from monthly lows, fueled by a sharp price rebound, rising trading volume, and growing investor confidence. With the treasury surpassing 1.8 billion ADA and founder Charles Hoskinson proposing a $100 million stablecoin and Bitcoin reserve plan, the project is gaining fresh momentum.

Cardano Price Rebounds Strongly as Bulls Regain Control

ADA’s price bounced from a monthly low of $0.5289 to a recent high of $0.5926, showing bullish strength near key support. Although there was a slight drop of 2.70% in the past day, its weekly recovery indicated better short-term sentiment. ADA still traded 81.34% below its all-time high of $3.10 from September 2021.

At press time, Cardano’s market cap was $20.47 billion, with a fully diluted valuation of $26.02 billion, according to CoinMarketCap. The daily trading volume increased by 74.91% to $630 million, indicating a renewed investor activity. Notably, over 70% of ADA holders have held for more than a year, signaling strong long-term conviction.

With $381.4 billion in annual trading volume and $1.175 billion in 2025 exchange outflows, ADA maintains a solid position among high-activity digital assets. The rising self-custody trends also support the growing trust in the long-term prospects of the project.

Cardano Treasury Grows as Stablecoin Strategy Gains Momentum

Cardano’s treasury now holds over 1.8 billion ADA, making it the largest decentralized token treasury in the industry. Community-led development proposals are financed by approximately 20% of all network fees to strengthen the governance structure of the platform. This mechanism continues to power Cardano’s long-term sustainability.

Building on this strong financial base, founder Charles Hoskinson has proposed converting $100 million worth of ADA into stablecoins and Bitcoin. This would establish a decentralized sovereign wealth fund, aimed at improving liquidity and asset diversification. Full details are expected during the Rare Evo conference in August.

As part of this initiative, liquidity improvements for USDM—Cardano’s fiat-backed stablecoin—are planned. Boosting USDM’s depth could enhance Cardano’s DeFi landscape and promote financial resilience. These developments support the network’s push to compete with other Layer-1s.

Bullish Patterns Emerge as ADA Eyes Major Breakout

Technical analysis indicates ADA is nearing the final phase of its extended correction. According to IntoTheCryptoverse, the ADA/BTC pair has declined over 75% in the past three years and now sits at 0.00000538. Nevertheless, this level is in line with past cycle lows, where multi-year lows in the past have evolved before significant price reversals in both BTC and USD terms.

Analyst Javon Marks confirms this sentiment, saying that a five-wave correction structure is coming to an end. His model indicates a potential 383% upside at current levels, which means returning to the $3+ level. If ADA maintains momentum, it may be in the early phase of a new bull cycle.

Coinbase’s recent listing of Wrapped ADA (cbADA) on the Base network has also boosted ADA’s visibility and cross-chain utility. This integration expands ADA’s DeFi use cases across Ethereum layer-2s. Added liquidity from cbADA continues to support ADA’s price recovery.

On-Chain Metrics and Derivatives Market Trends

Furthermore,  Cardano derivatives data from Coinglass indicates an increasing interest and optimistic attitude. The futures volume increased by 42.30% to reach $1.22 billion, while the open interest dropped by 2.80% to $791.94 million.

Long/short ratios were also positive, especially on Binance whereby the ratio stood at 2.84-a bullish tendency among traders. Liquidation data indicated that 858,070 total positions were closed in 24 hours, mainly long liquidations. The volume of options declined significantly, with less hedging being recorded during price consolidation.

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.