Cardano on May 26, 2025: Will the Bullish Trend Continue?

Analysis of Cardano on May 26, 2025, focusing on DeFi growth, new partnerships, and price trends

On May 26, 2025, Cardano (ADA) once again emerged as a prominent project in the crypto market. ADA traded between $1.35 and $1.42, reflecting a 5.4% increase over the past 24 hours. This price surge was driven by multiple factors, including new partnership announcements, DeFi ecosystem growth, and technical developments. A major highlight was the announcement of a strategic partnership with Bitcoin projects to advance DeFi. Revealed by Cardano’s founder, Charles Hoskinson, this collaboration enables Bitcoin smart contracts to run on Cardano’s network. This move could significantly enhance ADA’s utility and attract institutional investors. The news was widely welcomed in the crypto community, particularly for its potential to strengthen Cardano’s position in the DeFi ecosystem. The growth of Cardano’s DeFi ecosystem was another key driver of price movement. The total value locked (TVL) in Cardano’s DeFi protocols reached over $580 million, a 42% increase in the past month. Platforms like Minswap and Liqwid played a pivotal role in this growth, boosting demand for ADA as the network’s gas token. This trend reflects Cardano’s growing adoption in decentralized applications. Technically, Cardano is forming a symmetrical triangle pattern on the daily chart, often interpreted as a precursor to an imminent price breakout. After breaking the $1.29 resistance, the price moved toward $1.6, but analysts warn that failure to consolidate above this level could lead to a correction to $1.1. The RSI at 62 indicates moderate bullish momentum, though declining trading volume may signal weakening momentum. Fundamentally, the upcoming launch of the Midnight sidechain in 2025 has captured attention. This sidechain, utilizing zero-knowledge proofs, offers privacy-focused smart contracts, potentially expanding Cardano’s applications in finance and healthcare. Additionally, reports of 120 million ADA units withdrawn from centralized exchanges last week signal strong long-term holder confidence. However, risks remain. Potential selling pressure from whales and the SEC’s delay in approving a Cardano ETF until November 2025 could hinder price growth. Competition from blockchains like Solana and Avalanche may also pose challenges. Overall, Cardano exhibits short-term bullish potential, but investors should remain cautious of correction risks and regulatory developments. Risk management and close market monitoring are essential for informed investment decisions.