ADA has retreated to near a key multi-year range, while on-chain stablecoin activity on Cardano is heating up simultaneously. The market's current focus is on whether price support can hold and whether the increased stablecoin liquidity will be sufficient to improve short-term sentiment.
ADA is approaching its multi-year support level.
Coinpaper, citing analyst Ali Charts, reports that ADA is testing a key price range that has repeatedly proven effective since 2021. On the monthly chart, this area is roughly around $0.247; on the three-day chart, the key level is around $0.243.
The report noted that ADA's latest trading price is around $0.232, slightly below the lower limit of the monthly chart target given by analysts. This makes the upcoming closing performance more closely watched. If the price continues to stay below $0.247, the short-term structure may continue to weaken.
Ali Charts believes that $0.243 is a key support level to watch. This area has served as a starting point for rallies in previous cycles. If buying pressure regains control of this level, ADA may attempt to rebound towards $0.30.
Stablecoins saw the largest weekly increase in market capitalization.
In contrast to the downward pressure on prices, Cardano's stablecoin data has improved significantly over the past week. Messari data shows that among major blockchain ecosystems, Cardano's market capitalization has increased by 60% in the past 7 days, ranking among the top performers. Polygon saw a 38.8% increase during the same period, followed by HyperEVM, Blast, and XDC Network.
According to Cexplorer data, Cardano minted nearly 8 million USDCx in two days. This new issuance has increased the on-chain stablecoin supply and brought renewed market attention to Cardano's DeFi liquidity foundation.
As of the time of this report, the total market capitalization of the Cardano stablecoin was approximately $54.88 million. Of which:
- USDCx accounts for approximately 45.21%.
- USDM accounted for approximately 26.92%.
- The USDA accounts for approximately 15.45%.
DJED accounted for approximately 5.93%.
Net inflows increased, but the market remained cautious.
During the current statistical period, Cardano stablecoin saw a net inflow of approximately $8.55 million. Of this, approximately $9.57 million was minted and approximately $1.02 million was burned, indicating that the inflow significantly exceeded the outflow.
The report also mentioned that Cardano founder Charles Hoskinson previously stated his hope that the network could integrate leading stablecoins like USDC or USDT in the future to expand liquidity sources. Currently, USDCx and other native stablecoins remain the main part of Cardano's stablecoin activities.
Overall, Cardano is currently showing a divergence, with a weaker price and stronger growth in on-chain stablecoins. The market's focus going forward remains on whether ADA can regain and hold above $0.247; if it does, the $0.30 area will become the next key level to watch.
