Cardano Price Prediction: ADA Flashing Strong "Capital Outflow", Short-Term Pullback May Test $0.7228

Cardano (ADA) continues to weaken, with a temporary report of 0.7874 USD during the early Asian session on the 30th. The short-term pullback may further test 0.7228 USD. The market is currently undergoing a short-term correction, but Cardano co-founder Charles Hoskinson remains optimistic, stating that ADA's performance may outperform Bitcoin and even become the revenue layer of the Bitcoin ecosystem.

Hoskinson has high hopes for ADA

In a conversation with Blockworks co-founder Jason Yanowitz, Hoskinson stated that Bitcoin could rise 10 times in the next few years, reaching $1 million. However, he believes that Cardano has even greater potential, with the possibility of rising 100 to 1000 times, equivalent to a market cap of $2.7 trillion to $27 trillion. Nevertheless, the likelihood of ADA surpassing Bitcoin is still considered small, as BTC is increasingly held by financial institutions and governments.

In addition, Hoskinson emphasized the potential role of Cardano in the DeFi space and its ability to provide yields through staking, yield farming, and other decentralized financial services. He revealed that the Cardano ecosystem may regularly airdrop to ADA holders, starting with the distribution of NIGHT tokens, at which time 50% of the 24 billion token supply will be allocated to the ADA community.

Strong Capital Withdrawal in the ADA Derivatives Market

According to Coinglass data, the holdings of ADA derivatives contracts have decreased from 1.74 billion USD to 1.51 billion USD over the week, equivalent to a net outflow of 230 million USD. In the past 24 hours, the long-short ratio has also adjusted from 0.9272 to 0.8864, indicating an expansion of short positions, which currently account for 53.01% of the total contract volume.

Against the backdrop of the overall adjustment pressure in the cryptocurrency market, this decline reflects the cautious sentiment of investors.

(Source: Coinglass)

ADA Price Analysis: Testing Key Support Levels

The downward trend of ADA is currently moving towards the target of the 50-day Exponential Moving Average (EMA 50) at $0.7228, which is a key technical support level. Previously, ADA faced resistance at the resistance line formed by the highs on December 3 and March 3, and was unable to approach the 50% Fibonacci pullback level of $0.9187.

The MACD indicator broke below the signal line over the weekend, issuing a clear sell signal, while the RSI fell to 54, indicating that buying pressure is weakening.

On the other hand, if buying pressure emerges again, ADA may retest the resistance area around $0.9187—this coincides with the significant 50% pullback level.

(Source: Trading View)