Cardano may be nearing a bullish reversal as it forms a falling wedge pattern on the daily chart, a structure commonly associated with trend reversals. According to data from crypto.news, Cardano ( ADA ) was priced at $0.6404 with a market cap of $23.12 billion as of press time. At its present price, the token is down 15% over the past 30 days and remains 44% below its year-to-date highs. Cardano earlier hit its 2025 high on March 3, when it surged 75% within a single day, largely driven by its inclusion in U.S. President Donald Trump’s proposed crypto strategic reserve, announced a day prior. Another contributing factor was investor optimism around the potential approval of Grayscale’s spot Cardano ETF by the U.S. Securities and Exchange Commission. However, sentiment has since cooled as network activity declined and the SEC delayed its decision on the ETF until July 15, 2025. You might also like: Ethereum eyes recovery as whale inflows surge — is a breakout above $2.6K brewing? Despite recent weakness, ADA’s technical structure is showing signs of potential recovery. The formation of a falling wedge pattern, a bullish reversal indicator, is developing, with price action narrowing toward a crucial support level. ADA price, 20-day EMA and MACD chart — June 16 | Source: crypto.news ADA is approaching the $0.51 zone, a level previously defended by bulls during a corrective phase in April. A continued drop toward this level could precede a trend reversal if buyers regain control. The token has also slipped below its 20-day exponential moving average, reinforcing short-term bearish pressure. The MACD remains negative, indicating a lack of bullish momentum, while the Relative Strength Index stands at 41, a signal that points to bearish conditions without yet reaching oversold territory. ADA RSI chart — June 16 | Source: crypto.news A decisive breakout above the wedge and key resistance at $0.68 could signal a reversal and drive ADA toward the $0.86 level, approximately 34% above current prices. Conversely, failure to hold above $0.51 could expose ADA to a deeper decline toward $0.32, the next major support. While price action remains weak, fresh developments may offer a catalyst for recovery. Cardano founder Charles Hoskinson recently confirmed that XRP will be integrated into Lace Wallet, Cardano’s native wallet platform. The move will allow users to manage XRP alongside ADA and Bitcoin, increasing utility and cross-asset exposure. Moreover, Cardano is exploring XRP-based DeFi initiatives and potential integration of Ripple’s RLUSD stablecoin, which could boost liquidity across its ecosystem. Further upside catalysts include the anticipated Glacier airdrop, linked to Cardano’s Midnight protocol, and Hoskinson’s proposal to convert $100 million worth of ADA into Bitcoin and stablecoins. The treasury strategy aims to generate non-inflationary revenue and stimulate growth within the Cardano DeFi ecosystem. Read more: Polyhedra’s ZKJ token plunges 83% after ‘abnormal’ transactions’ cause liquidity crisis Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
