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Cardano's ADA Finds 'Strong Support' After Dramatic Price Swings Amid Heightened Volatility
Cardano’s ADA is among tokens that saw wild price swings amid Elon Musk and President Trump's clash over the U.S. economy.
Jun 6, 2025, 2:29 p.m.
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What to know:
- Cardano’s ADA token experienced significant volatility, dropping 10.29% from $0.688 to $0.621 before recovering to $0.66 in early U.S. morning hours.
- Cardano's ecosystem has seen some recent catalysts, including the first Bitcoin-to-Cardano transaction involving Ordinals, which could potentially open up $1.5 trillion in cross-chain trading volumes.
The cryptocurrency market is experiencing heightened volatility amid an escalating feud between President Donald Trump and his former head of the Department of Government Efficiency, Elon Musk, over the state of the U.S. economy.
Cardano's ADA has also seen extreme price swings amid market uncertainties.
STORY CONTINUES BELOW
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After dropping from $0.688 to $0.621, ADA found strong support and rebounded, forming an ascending channel with resistance at $0.644, according to CoinDesk Research's technical analysis model. The technical indicators suggest a potential renewed bullish momentum as the cryptocurrency reclaims the $0.640 level with decreasing volatility.
At press time, ADA is trading at $0.66, down about 1.8% over the past 24 hours, while the broader market gauge CoinDesk 20 Index fell 1%.
Some recent news within the ADA ecosystem has provided the market with potential catalysts for the token.
Institutional interest in the Cardano blockchain continues to grow, with Franklin Templeton, a $1.6 trillion asset manager, now running Cardano nodes. Additionally, Norway's NBX has recently partnered with Cardano to build Bitcoin-based DeFi, highlighting the blockchain's secure design for institutional adoption.
The successful execution of the first Bitcoin-to-Cardano transaction involving Ordinals marks a significant milestone that could potentially unlock $1.5 trillion in cross-chain trading opportunities.
Technical Analysis Highlights
- Sharp decline from $0.688 to $0.621 (10.29% drop) occurred on exceptionally high volume.
- Strong support zone established at $0.620-$0.623 where buyers aggressively stepped in.
- Recovery formed an ascending channel with resistance at $0.644.
- Overall range of $0.070 (10.29%) highlights the extreme market conditions.
- Potential renewed bullish momentum as ADA reclaimed the $0.640 level with decreasing volatility.
- Hourly price action showed a possible recovery pattern from $0.641 to $0.643.
- Short-term resistance level established at $0.643-$0.644.
Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.
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