Cardano (ADA) is on its way to reaching key support levels, actively forming potentially bullish signals.
Current Market Situation for Cardano
As of this writing, Cardano was trading at $0.6348, according to CoinGecko data. The price movement indicates a trend of forming higher lows, which analysts believe may signal a resumption of bullish momentum.
Market Analysis from Lingrid
Market analyst Lingrid pointed out, *“Price action is forming higher lows within a broad descending channel, eyeing a break toward the $0.75 target. A close above the resistance trendline could ignite bullish momentum and invalidate the recent downside structure.”*
Charles Hoskinson's Stablecoin Proposal
Charles Hoskinson recently highlighted Cardano’s low stablecoin ratio as a major weakness. He proposed converting $100M in ADA from the Cardano treasury into Bitcoin and stablecoins to boost decentralized finance (DeFi) growth and liquidity. Given that the stablecoin-to-DeFi ratio is under 10%, such diversification could significantly improve the situation. The company's treasury holds $32 million in stablecoins and $330 million in total value locked.
The formation of higher lows on Cardano's chart and the proposed measures to improve liquidity indicate the potential for further growth of the asset.
