Will Cardano's Recent Bounce Lead to a Bigger Rally?

Cardano ($ADA) is showing signs of a potential recovery after bouncing from a crucial support level. The recent drop in price seems to be losing its momentum, and rising activity in both the derivatives market and its stablecoin ecosystem is bringing back optimism for a possible upward move.

On-Chain and Derivatives Data Are Bullish

Several key indicators suggest that new interest is building:

• Derivatives Open Interest: According to CoinGlass, the open interest in ADA futures has climbed to $1.77 billion, a sign that new money is entering the market. This surge in activity suggests that traders might be preparing for a more significant price move.
• Stablecoin Growth: Data from DefiLlama shows that the market cap for stablecoins on Cardano's network has been growing steadily since late July, reaching $38.58 million. This trend points to increasing liquidity and network activity, which often supports a bullish outlook.

Key Price Levels to Watch

After breaking a long-standing descending trendline, ADA recently tested the $1 mark before pulling back. Last week, it fell 5.4% but found strong support at the $0.82–$0.84 range, which is a critical defense line for bulls.

If ADA can maintain its current momentum, it will need to break past the $1.02 high from August 14. A clear move above this level could set the stage for a push toward its year-to-date high of $1.17.

What's Next for ADA?

Technical indicators are also showing early signs of a bullish shift. The Relative Strength Index (RSI) is at a neutral 58, and the MACD lines are converging, which could precede a sharp move in either direction. While a dip back to $0.84 is possible if sellers take back control, as long as the key support levels hold and trading volumes increase, a stronger rally remains a real possibility.

August 2025, Cryptoniteuae