Cardano (ADA) is testing a key ascending trendline following its recent breakout, as buyers attempt to maintain the recovery pattern. Meanwhile, Cardano’s newly approved treasury proposal aims to boost DeFi liquidity and increase ecosystem engagement, potentially supporting ADA if buyers defend the trendline and network activity improves.
As of now, according to CoinMarketCap data, Cardano is trading at the price of $0.1766, with a decrease of 1.97% in the past 24 hours and a decline of 10.54% over the past week, reflecting continued bearish market momentum.
ADA Price Retests Trendline as ADA Eyes $0.4488 Breakout Target
According to crypto strategist The Boss, ADA is retesting its ascending trendline after surging above a rounded-bottom formation. On the daily chart, the setup developed above the $0.1064 support level, while the upward push carried ADA toward $0.2242 resistance before the latest retracement.
ADA’s retreat toward the trendline now gives buyers a crucial test. Holding the $0.1791 area could keep the recovery structure intact, while a deeper decline below $0.1503 may expose $0.1064 and signal that the recent bullish setup is losing strength.
Technical indicators could help confirm ADA’s next direction, with Relative Strength Index and Moving Average Convergence Divergence showing whether buying interest is returning and ADX measuring trend strength. A break above $0.2242 could open the way toward $0.3136, $0.3825, and eventually $0.4488 if momentum persists.
Cardano DReps Approve 120 Million ADA Treasury Fund for DeFi
Crypto.news also reported that Cardano’s decentralized representatives, or DReps, approved a 120 million ADA treasury withdrawal aimed at supporting liquidity across its DeFi sector. The proposal cleared the required two-thirds supermajority, giving the community-backed initiative enough support to proceed under Cardano’s governance framework.
The funds are set to support Cardano PRIME, an initiative focused on improving DeFi liquidity through incentives, security reviews, and market development. The allocation could give decentralized applications better access to capital while encouraging greater participation and activity across Cardano’s growing financial ecosystem.
The decision highlights Cardano’s community-led governance, with DReps playing a direct role in treasury spending decisions. The community will now closely monitor how the 120 million ADA allocation deepens liquidity, expands DeFi participation, and strengthens broader network activity.
