Cardano (ADA) is currently in a consolidation phase, trading at $0.996 with resistance at $1.09. Despite a 2% gain, trading volumes have decreased by 40% to $1.4 billion, and market capitalization has dropped by 14% to $35 billion, indicating weak buying pressure. However, ADA's weekly chart suggests a potential rally to $2.47, mirroring past price patterns. The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicate bullish momentum despite reduced volumes. Rising network activity, with daily active addresses reaching 50,828, could support the rally, although a surge in DeFi activity is needed. The market shows a bearish sentiment with a Long/Short Ratio of 0.824, but a short squeeze could trigger a recovery.

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Cardano [ADA], at press time, traded at 0.996 after a slight 2% gain in 24 hours. However, trading volumes were down by 40% to $1.4 billion, showing reduced market interest. Despite these gains, Cardano’s market capitalization has dropped by 14% in less than one week to $35 billion. This indicated that buying pressure remained weak, and more volumes are needed to aid a rally.Nevertheless, on the weekly chart, ADA showed signs of an upcoming rally past $2. Long-term trend hints at incoming rally ADA’s weekly chart showed signs of a potential rally to $2.47 if the token follows past price patterns. After completing an ascending parallel channel late last year, ADA has entered a period of consolidation, with resistance at $1.09 preventing an upward breakout. The current trend mirrored ADA’s performance in 2021, where its rally cooled off after a sharp rise. After weeks of trading in consolidation, ADA broke out and registered an over 200% gain within two weeks to $2.47. The Relative Strength Index (RSI) at 62 indicated that ADA was cooling off after being overbought. However, sellers are yet to overwhelm buyers, highlighting some level of conviction among traders that the rally could resume. ADA’s Moving Average Convergence Divergence (MACD) further showed that despite reduced buying volumes, the momentum remained bullish. Rising network activity could fuel the rally Activity on the Cardano network has been on the rise following an increase in the number of addresses. Per Santiment, the daily active addresses on the network reached 50,828 earlier this week, suggesting rising network usage or a spike in trading activity. However, despite the increasing number of addresses, data from DeFiLlama showed a drop in Cardano’s Total Value Locked (TVL) to $518M. A surge in DeFi activity is needed to support ADA’s long-term uptrend. Short traders dominate the market Data from Coinglass showed a surge in the number of ADA short positions in the market. In fact, the coin’s Long/Short Ratio has dropped to 0.824, marking its lowest level in over a month.Read Cardano’s [ADA] Price Prediction 2025–2026When many traders are taking short positions, it shows a bearish market sentiment. However, an influx of short positions could also aid recovery if there is a short squeeze that forces traders to buy to close their positions. 

Cardano (ADA) Eyes Potential Rally to $2.47 Amid Consolidation Phase