Cardano (ADA) is now under renewed scrutiny after a challenging year marked by significant price losses and a slowdown in the ecosystem’s momentum. In recent weeks, a combination of technical signals, board decisions and regulatory speculation has brought ADA back into the spotlight.
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While optimism has returned to parts of the market, the network now faces a crucial test: whether short-term recovery can translate into sustainable progress on price, adoption and infrastructure.
ADA's price trends slightly upwards on low timeframes as seen on the daily chart. Source: ADAUSD on Tradingview
Cardano (ADA) technical signals suggest an improvement in momentum
Cardano’s prize The action is showing signs of stabilizing after falling more than 60% in 2025. Currently, ADA formed its first golden cross of 2026, with short-term moving averages rising above longer-term averages on both hourly and two-hour charts.
ADA also printed its first positive weekly candle in more than two months, reflecting improving sentiment. At the time of writing, the token is trading around $0.41-$0.416, supported by higher futures open interest and daily trading volume near recent highs.
However, the price remains limited by resistance around $0.401, a level that aligns with the 50-day moving average and has rejected several breakout attempts since late 2024. Sustained movement above this zone is widely seen as necessary for further upside towards higher historical levels.
Governance financing and ecosystem priorities
Beyond graphs, Cardano has taken steps to address ecosystem development through governance. A proposal authorizing the withdrawal of 70 million ADA for critical integrations has been ratified by the network’s governing bodies.
The funding is intended to support infrastructure additions such as stablecoin integrations and oracle services, including work related to USDC, USDT, and Pyth. Parallel to this are the Cardano Foundation has allocated additional resources to increase stablecoin liquidity, a key requirement for competitive DeFi activity.
Founder Charles Hoskinson has emphasized that future success will be measured less by short-term price movements and more by growth in metrics such as active users, total value locked and real-world usage.
The coming one Ouroboros Leios upgrade and the planned expansion of Midnight, a privacy-focused sidechain, are central to this strategy.
ETF expectations and the outlook for 2026
Another factor driving expectations is the prospect of a spot Cardano ETF in the United States. While no filing has been approved as of December 2025, products such as the Grayscale Cardano ADA Trust are still under review by the SEC, with decisions now expected in early 2026.
Previous approvals of Bitcoin and Ethereum spot ETFs have raised expectations, although analysts note that ADA faces additional scrutiny related to classification debates.
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All things considered, Cardano is entering 2026 at a crucial time. Technical indicators point to a recovery, governance actions are aimed at strengthening the ecosystem, and regulatory developments may impact institutional access. Whether these elements are consistent with a sustainable new phase will depend on the implementation in the coming months.
Cover image of ChatGPT, ADAUSD chart from Tradingview