Cardano could be on the verge of a trend reversal, driven by Coinbase’s recent introduction of wrapped ADA on the Ethereum Layer 2 network, Base.
On June 24, Coinbase announced the launch of cbADA — a wrapped version of Cardano’s native token — which is fully backed 1:1 by ADA held in Coinbase custody, with transparent proof-of-reserves.
The release of cbADA expands ADA’s utility by allowing holders to participate in lending, borrowing, and liquidity provision on decentralized finance (DeFi) protocols beyond the Cardano ecosystem.
Cardano holders will soon be able to put their ADA to work across Ethereum-based DeFi platforms such as Uniswap, PancakeSwap, and Aerodrome Finance (AERO) — a functionality not natively supported on the Cardano network.
Adding to the momentum, Cardano’s upcoming privacy-centric sidechain, Midnight, is expected to give the ecosystem a further boost. Midnight is preparing to launch its native governance token, NIGHT, through a major airdrop event dubbed the Glacier Drop. To qualify, users must actively engage with the Cardano network, which could drive a spike in short-term on-chain activity. As NIGHT begins trading and powers privacy-focused applications on Midnight, Cardano’s ecosystem may see continued growth.
At the time of writing, ADA is priced at $0.571, reflecting a 2% decline over the past 24 hours and nearly 24% over the past month. Daily trading volume has dipped 1.7% to $586 million, while open interest in ADA derivatives has dropped by 2.15% to $724.3 million, according to data from Coinglass. This decline in open interest typically suggests waning speculative interest as traders reduce positions or exit the market.
On the technical front, ADA remains in a downward trend. The relative strength index (RSI) sits at 36 — approaching oversold territory — but has begun to edge upward. Bollinger Bands have tightened, with price attempting a rebound from the lower band. While the momentum oscillator has turned positive, the moving average convergence divergence (MACD) is still showing signs of mild bearish divergence.
ADA is currently trading below both its 50-day and 200-day moving averages — a signal that calls for caution among traders. However, if cbADA adoption picks up and the Midnight airdrop drives increased network activity, ADA could challenge the resistance zone between $0.60 and $0.62. A successful breakout above this range may open the door for a move toward $0.70.
On the downside, failure to maintain support at $0.55 could see ADA slide further, with the next key support level sitting at $0.52.
