Cardano (ADA) has been experiencing a period of fluctuating price action. Despite efforts to recover, ADA has faced challenges in maintaining its upward momentum.
While the altcoin has held onto an uptrend since the beginning of the month, it now faces a challenge. Traders may be pulled back from participating, potentially stalling any further price recovery.
Cardano Traders Are In Trouble
The sentiment around Cardano (ADA) is mixed. According to the Liquidation Map, short traders are at a disadvantage if ADA continues its uptrend. A breach of $0.77 would lead to the liquidation of approximately $20 million worth of short contracts.
This could result in upward pressure on the price as shorts are forced to close their positions.
However, without strong bullish momentum, this upside potential may not materialize, keeping traders cautious. While short traders could face substantial losses if ADA rises, this risk does not necessarily mean that the uptrend is sustainable.
Overall, Cardano’s market momentum reflects a sense of uncertainty. The number of active addresses on the network has recently dropped to a four-month low of 20,700. This decline in investor participation indicates a lack of enthusiasm among ADA holders. Many investors are seemingly pulling back, waiting for clearer signals of recovery before re-engaging with the token.
This lack of participation has had a negative impact on Cardano’s liquidity and transaction volume, further influencing its price dynamics. The decreasing number of active addresses also suggests that traders are hesitant to invest in ADA, which could slow down any potential price recovery.
Cardano is currently trading at $0.70, holding above the support level of $0.70, and the uptrend line has supported the price since early March. The immediate target for ADA is to breach the $0.77 resistance level, but this remains a challenge. Achieving this would require a rise of approximately 9%, which may be difficult under the current market conditions.
In the absence of a broader market rally, ADA is likely to remain consolidated under the $0.77 resistance. Should the altcoin fail to hold the $0.70 support, it could experience a decline, potentially falling to $0.62. This would invalidate the recent bullish outlook, further dampening investor confidence.
If ADA successfully breaches the $0.77 resistance, it could rise to $0.85, thereby invalidating the bearish thesis. Such a move would likely signal a more sustained recovery, as it would clear a significant hurdle for Cardano.
The CME is launching futures trading on XRP on May 19, pending regulatory review. It will allow both micro and large contracts, from 2,500 to 50,000 XRP, prioritizing flexibility and precision.
This development could provide several key advantages for the asset. In addition to substantial liquidity, the CME will treat the asset as a commodity like Bitcoin and Ethereum. This could potentially boost the chances of an XRP ETF approval.
CME to Launch XRP Futures
XRP futures are financial contracts that let traders speculate on the future price of XRP without owning the actual XRP coins. It will allow institutional and professional traders to hedge risk or speculate on XRP prices using regulated instruments.
CME’s involvement is significant—it’s the world’s largest derivatives exchange, and adding XRP gives more legitimacy and market depth.
“While overdue in a bunch of ways, this is an incredibly important and exciting step in the continued growth of the XRP market!” Ripple CEO Brad Garlinghouse claimed via social media.
Meanwhile, futures trading in the institutional market could potentially aid the chances of an XRP ETF. Additionally, it potentially opens a huge window of new liquidity for the token. The recognition of CME’s brand will guarantee product quality in the eyes of institutional investors.
Coinbase added XRP futures trading earlier this week after receiving official CFTC approval. The CME is also a CFTC-regulated institution, but it will take a few weeks to offer its own XRP futures.
Still, it began offering Bitcoin and Ethereum futures this year, and this development suggests it’s treating Ripple’s altcoin like a commodity, too.
The announcement acknowledges that it still requires regulatory approval, possibly explaining the long wait. These futures will be cash-settled and based on the CME’s XRP-Dollar reference rate, which is calculated daily.
XRP’s demand hit a five-month low this week, and the CME won’t offer futures for nearly a month. This news is undoubtedly bullish, but it may take some time to materialize fully in the market.
“This was due to an entity(s) on the Binance perpetuals market. That’s what triggered the entire cascade. The initial drop below $5 was triggered by a ~1 million USD short position being market-sold. This caused over 5% of slippage in literal microseconds. That was the trigger. This seems intentional to me. They knew what they were doing,” the analyst stated.
Pi Network: From Chainlink Buzz to Transparency Fears
Pi Network recorded strong optimism this week as its native Pi Coin surged by double digits. BeInCrypto attributed the surge to the announcement of a key integration with Chainlink.
They pitched this strategic collaboration as a gateway to real-world utility. Specifically, it positioned Pi closer to the broader DeFi and smart contract ecosystem. However, the euphoria proved short-lived.
Allegations suggest that, like the OM token, Pi coin lacks full clarity around circulating supply, wallet distribution, and centralized control. To some, these are potential red flags in an increasingly regulation-sensitive industry.
“The OM incident is a wake-up call for the entire crypto industry, proof that stricter regulations are urgently needed. It also serves as a huge lesson for the Pi Core Team as we transition from the Open Network to the Open Mainnet,” wrote Dr Altcoin.
Pi coin reversed gains within days, falling 18% from its weekly high. At the time of writing, PI was trading at $0.6112, up by a modest 0.7% in the past 24 hours, per CoinGecko.
Grayscale’s Altcoin Shake-Up: 40 Tokens Under Review
This week in crypto also showed that institutional investor interest in altcoins is heating up again, with Grayscale leading the charge.
The digital asset manager unveiled its updated list of assets under consideration for the second quarter (Q2) 2025. BeInCrypto reported that the list featured zero altcoins across sectors such as DePIN, AI, modular blockchains, and restaking. Among the notable tokens being eyed are SUI, STRK, TIA, JUP, and MANTA.
The update reflects Grayscale’s growing thesis around emerging crypto trends, particularly as the firm seeks to expand beyond its core Bitcoin and Ethereum products.
This announcement follows a broader strategic overhaul from three weeks ago when Grayscale reshuffled its top 20 list of altcoins by market exposure. Several older names were dropped at the time, while newer narratives like Solana-based DePIN and Ethereum restaking plays were pushed to the forefront.
The expansion into 40 coins signals Grayscale’s recognition of renewed retail and institutional appetite for differentiated assets. However, inclusion in the list does not guarantee a fund launch. It only indicates Grayscale’s active research.
XRP and SWIFT Partnership: Breaking Down the Rumors
There was speculation this week about a possible partnership between Ripple’s XRP and banking giant SWIFT in crypto.
This narrative was based on a misinterpreted document. A series of cryptic social posts exacerbated the speculation, which some took as confirmation of collaboration between the global payments network and the XRP ledger.
However, BeInCrypto’s in-depth reporting sank the rumors. While Ripple has long pursued banking institutions and SWIFT has shown openness to blockchain innovations, there is no verified partnership between the two.
SWIFT’s public-facing projects around tokenization and digital asset settlement do not include XRP.
Despite the debunking, the rumors sparked an important conversation about XRP’s long-term positioning. The token remains a top-10 asset and a favorite among retail investors banking on utility-driven price appreciation.
With Ripple’s legal battles with the SEC nearing resolution and international CBDC partnerships in the works, the project is far from irrelevant.
US Dollar Dives: What the DXY Crash Means for Bitcoin
The US Dollar Index (DXY) hit a three-year low this week, sending ripples through the crypto markets. Historically, a falling DXY has been bullish for Bitcoin, and this week was no different, with BTC reclaiming above the $84,000 range.
The greenback’s weakness reflects growing fears of fiscal deterioration in the US, as rate cuts loom and Treasury debt soars.
Japan’s 10-year bond yields hit multi-decade highs, forcing the Bank of Japan (BoJ) into increasingly precarious interventions. As Japanese liquidity spills outward, crypto and risk assets have become inadvertent beneficiaries.
This macroenvironment is ideal for Bitcoin. Weakening fiat, rising global liquidity, and crumbling bond market confidence create a perfect storm.
Cardano (ADA) is up more than 12% over the last seven days and is now trading above $0.70 for the first time since the end of March. Trading volume is also rising, up 33% in the past 24 hours to reach $723 million.
Despite the price recovery, some technical indicators suggest that ADA’s momentum is weakening and approaching key decision points. Here’s a closer look at Cardano’s current setup as the new week begins.
Cardano BBTrend Weakens After Positive Streak
Cardano BBTrend indicator is currently at 7.55, down from 13.27 just three days ago. This sharp decline shows that the strength of recent price expansion has cooled, even though the asset has posted positive daily closes over the last four days.
The falling BBTrend suggests that while ADA has been moving higher, the expansion’s underlying momentum is losing intensity.
The BBTrend, or Bollinger Band Trend indicator, measures the strength of a price trend based on the expansion or contraction of Bollinger Bands.
A rising BBTrend typically signals strong momentum and increasing volatility, while a falling BBTrend suggests weakening momentum or the start of a consolidation phase.
With ADA’s BBTrend now at 7.55, the indicator still points to some positive momentum, but at a much weaker pace than earlier in the week.
If the BBTrend continues to decline, ADA could enter a consolidation phase, but if buying pressure returns, the token could extend its current positive streak.
ADA Faces Indecision as Buyers and Sellers Battle for Control
Cardano Directional Movement Index (DMI) shows its Average Directional Index (ADX) currently sitting at 17.14, a notable drop from 31 two days ago.
This sharp decrease signals that the strength of ADA’s recent trend has weakened significantly. Meanwhile, the +DI (positive directional indicator) is at 19.95, up from 15.96 a few hours ago but still down from 26 two days ago.
The -DI (negative directional indicator) sits at 19.07, slightly down from 21.16 earlier but up compared to 14.49 two days ago, reflecting mixed momentum between buyers and sellers.
The ADX measures the strength of a trend without indicating its direction.
Readings above 25 typically suggest a strong trend, while readings below 20 point to a weak or consolidating market. With ADA’s ADX now at 17.14, trend strength is weak, and neither buyers nor sellers currently have a clear advantage.
Cardano’s Bullish Structure Faces Critical Test Near $0.69
Cardano’s Exponential Moving Average (EMA) lines suggest an uptrend, with the short-term EMAs positioned above the long-term ones.
However, Cardano price has repeatedly tested the support level at $0.69 and is trading very close to it.
This price action signals that while the broader trend remains positive, the bullish momentum has weakened, and the $0.69 support is becoming a critical zone.
If ADA loses the $0.69 support, the next downside targets would be around $0.63, followed by $0.609 and potentially $0.59 if selling pressure accelerates.
On the other hand, if buyers step back in and reinforce the uptrend, ADA could rally to retest resistance at $0.746.
A breakout above $0.746 could open the door for a move toward $0.77, offering a strong bullish setup if momentum strengthens again.
