Cardano crypto’s network is slowly building its pace with developments, updates, and collaborations, but its price is going down since Q1 2025. Even the sell-off last week saw ADA drop to test support at $0.65 before reversing on Monday. 

The Broader factors in the market are contributing to struggles in the Cardano price, like the recent decision to extend the review period for Grayscale’s ADA ETF filing. 

What makes ADA strong right now is its principles and recent developments that allow it to work with other blockchains. As a result, the institutions are seeing it as a potential asset, gaining more credibility when, alongside other altcoins, ADA became part of Trump’s crypto reserve announcement in Q1.

However, in the turf with larger blockchains like Solana and XRP, which carry larger market caps, are still a challenge. It is crucial for Cardano crypto to boost its adoption alongside staying ahead technologically.

Should We Be Bullish on Cardano’s Price Short-Term Outlook?

Right now, the Futures traders on Binance have a bullish bias, as highlighted by Coinglass’s long-to-short ratio of 2.57. At the same time, the liquidation data isn’t aligned with Binance traders’ bias, as approximately $921.46K amount of long positions were liquidated in the last 24 hours, compared to roughly $140.45K in shorts, signaling short-term bearishness weighing more in ADA price.

Technically, Cardano price, at least on the chart, showcases some bullish structure, as ADA price has taken support on a Fixed range high-profile based support zone. 

But, the technical chart-based bullish outlook isn’t that sufficient; several onchain factors are on decline. Like Network Realized Profit/Loss (NPL) metric experienced a significant spike on Tuesday, marking the highest profit booking since mid-May, aligning with this Age Consumed index also increased, which reveals bearish signs. 

The MVRV 30-day has also moved below the zero line at “-6.799%” , this move below the zero line indicates that, on average, recent ADA holders are now in the loss. 

Cardano’s TVL On Consistent Decline

Similarly, the persistent drop in Cardano’s TVL to around $318 million has derailed any optimism, at least in the short term.

A lower TVL suggests a clear fall in the adoption of the protocol within the crypto DeFi ecosystem, which translates to low demand for Cardano’s token, ADA. This makes it clear that it is utmost important for Cardano to stay ahead technologically to gain rise in adoption and a larger presence in the market, if the ADA price wants to see new highs in the long-term outlook.

Based on current chart conditions, it is trapped in a falling channel, and it hangs by a thread, and that thread is the $0.65 support area. Once broken, a fall would be imminent.