Cardano Analysis on May 28, 2025: Is ADA Ready for a Surge?

Cardano analysis on May 28, 2025: Price at $1.08, with potential to hit $1.32.

On May 28, 2025, Cardano (ADA) traded at around $1.08, showing signs of a short-term bullish trend. Its daily trading volume reached approximately $1.5 billion, reflecting investor interest in this altcoin. However, declining network activity has raised concerns about the sustainability of this trend. Recent developments highlight a significant increase in daily transactions on the Cardano network, with active addresses showing notable growth over the past week. This surge aligns with the collaboration between Cardano’s VESPR wallet and the Maestro platform to advance Bitcoin-based DeFi, drawing considerable attention. This partnership could boost Cardano’s adoption in the DeFi sector. Additionally, speculations about potential Cardano ETF filings by firms like 21Shares have fueled market optimism. From a technical perspective, Cardano is testing key support at $1.05. The Relative Strength Index (RSI) stands at around 52, indicating balanced bullish momentum. Holding this support could drive Cardano toward the $1.12 resistance, and breaking it may push prices to $1.32. However, a break below $1.05 could lead to a decline to $0.95. Daily charts show bullish patterns like higher highs, confirming market health. Nevertheless, a drop in active addresses since the December 2024 peak raises concerns about reduced trader participation and liquidity. On the positive side, network upgrades like the Voltaire update, which enhances decentralized governance, have bolstered investor confidence. Institutional adoption is also growing, with asset management firms exploring ADA investment opportunities. Macroeconomic risks, such as tighter monetary policies or trade tensions, could exert downward pressure on the market. Technical indicators like MACD suggest potential volatility, but the overall outlook remains positive. Investors should monitor support and resistance levels and proceed with proper risk management. Overall, Cardano is well-positioned due to network developments and ETF speculations, but declining on-chain activity calls for caution.