Cardano Gains Momentum as Broader Crypto Market Stalls

Cardano CRYPTO000ADA

While major cryptocurrencies like Bitcoin and Ethereum showed minimal movement over the weekend, Cardano (ADA) posted a significant breakout. The digital asset surged approximately 9% on Sunday to reach $0.36, a performance that clearly distinguished it from the wider market. This upward move is supported by tangible advancements within its ecosystem and increasing liquidity across its decentralized finance (DeFi) applications.

A notable development comes from Cardano founder Charles Hoskinson, who announced a strategic pivot at the turn of the year. He has placed his X (formerly Twitter) account into "silent mode," delegating its management to curators and artificial intelligence. Market observers interpret this move as a deliberate refocusing on core technical development.

Simultaneously, Hoskinson expressed criticism toward politically motivated meme coins such as "Trump Coin," reiterating his commitment to a five-year strategy for the Midnight protocol. The community has largely welcomed this shift away from social media engagement in favor of concentrated development efforts.

Midnight Protocol Advances to Crucial Phase

A key catalyst for the current price action is the ongoing development of the privacy-focused sidechain, Midnight. The protocol has now entered its "Kūkolu" phase, a critical preparatory stage ahead of its mainnet launch. This phase is dedicated to stabilizing the network for real-world applications.

The sidechain's native token, NIGHT, is already active and trading around $0.09. This progress positions Cardano within the growing niche of data-protection smart contracts, a segment anticipated to gain substantial importance in the DeFi market by 2026.

On-Chain Metrics Reflect Growing Activity

Underlying data substantiates the bullish sentiment:

• The Total Value Locked (TVL) within Cardano's DeFi ecosystem increased by 4% in 24 hours, reaching $178.9 million.
• Derivative markets are showing heightened activity, including a notable long position worth $13.76 million with exposure to ADA.
• This accumulation is seen as an indicator of rising interest from institutional market participants.

These liquidity inflows signal that applications native to the Cardano blockchain are experiencing renewed utilization.

Technical Analysis and Price Trajectory

From a technical perspective, ADA is currently testing significant resistance levels. Having rebounded from a support zone near $0.33, the focus now shifts to the $0.38 to $0.40 range. A major hurdle will be the 50-day moving average, situated at $0.41. A sustained breakout above this level could potentially signal a trend reversal. Currently, Cardano trades approximately 60% below its 2025 highs.