2025 May ADA Price Rally: Can Bulls Conquer the Descending Channel?

2025 May ADA Price Rally: Can ADA Sustain Its Bullish Rebound?

At the time of publication, Cardano (ADA) was testing the upper resistance of a descending parallel channel at the $0.7961 level, which was a significant juncture. This move indicates increasing short-term bullish momentum after a strong recovery from the $0.66 zone.

With crowd sentiment at 0.81 and smart money sentiment higher at 0.99, sentiment among retail and institutional traders has firmly turned bullish. This change in optimism occurred at the same time that ADA advanced to the upper edge of a channel that was falling. If ADA overcomes the resistance in the area, the setup indicates a potential continuation.

Bears Beware: Crypto Short Sellers Face $880K Liquidation Avalanche

Over $880K in short liquidations occurred on key exchanges in the past 24 hours, while only $25.53K in long-side liquidations were recorded, according to CoinGlass statistics. There was significant pressure on bearish traders, as evidenced by the $421K short squeezes that occurred on Binance alone.

Cardano’s Uptrend Lacks Whale Support: Large Transactions Plunge 86%

IntoTheBlock’s on-chain measurements showed a notable drop in the volume of large transactions. Transactions over $10 million have fallen 86.93% from their peak levels, and those over $1 million have fallen 83.54%.

Even though ADA’s price recently increased, it appeared to be driven by retail since there was no significant whale action. If momentum continues and ADA breaks important levels, institutional capital’s re-entry might quicken the upward trend.

ADA Nears Decision Point: Will Profit-Taking or Optimism Prevail?

Due to higher unrealized profits among holders, ADA’s intraday profitability has grown to +13.34%, according to Santiment’s MVRV Ratio. This indicator showed that the market might be reaching a decision-making point, which might either provoke profit-taking or sustain optimism. The ratio is still below the 25% risk level, which usually indicates strong sell pressure. If the current sentiment holds, there is still potential for gain.

ADA Breakout on the Horizon? Cardano Reclaims Key Fib Level

As of this writing, ADA had recaptured the 0.618 Fib level at $0.6921 and was targeting the 0.786 Fib zone of $0.7186. As of this writing, Cardano was trading at $0.7849, representing an 8.92% daily gain. Afterwards, $0.8498, which corresponds to the Fib 1.618 extension, was the next upward objective. Price structure, momentum indicators, and liquidation pressure all suggested that if ADA stays above $0.72, there might be a dramatic breakout.

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