Cardano's native token, ADA, has demonstrated notable strength, pushing above the $0.64 mark amid a flurry of significant ecosystem developments. The price action is underpinned by both fundamental growth and a bold strategic proposal from its co-founder, Charles Hoskinson. In a recent livestream, Hoskinson suggested a pivotal move to diversify a portion of the Cardano treasury, proposing to convert $100 million worth of ADA into a strategic mix of Bitcoin (BTC) and native stablecoins like USDM and USDA. This initiative aims to directly address what Hoskinson described as a critical issue "killing Cardano": its underdeveloped stablecoin market. The goal is to elevate the ratio of stablecoin issuance to Total Value Locked (TVL) from its current level of approximately 10% to a more robust 30-40%, fostering a healthier and more liquid DeFi environment.

Cardano's DeFi Ambitions and Market Realities

The proposal highlights a stark contrast between Cardano and its Layer-1 competitors. According to data from DefiLlama, Cardano's TVL currently stands at around $356 million, with only $31 million in stablecoins minted on its network. This pales in comparison to a rival like Solana, which boasts a staggering $9.8 billion in TVL supported by $11 billion in on-chain stablecoins. Hoskinson's plan is a direct attempt to bridge this gap, generating what he calls "non-inflationary revenue" to bootstrap the DeFi ecosystem. He swiftly dismissed concerns that a $100 million sale would negatively impact ADA's price, asserting that such a transaction, if managed properly, "would not cause any problems at all" and labeling such fears as "inexperienced." This move, if approved and executed, could signal a major strategic shift for Cardano, prioritizing cross-chain liquidity with Bitcoin and bolstering its internal stablecoin infrastructure to attract more capital and developers.

ADA Price Analysis and Technical Levels

From a trading perspective, the market has reacted positively to these developments. ADA's price climbed roughly 3%, reaching an intraday high of $0.6502 before settling near $0.6460. The token traded within a dynamic range of $0.6219 to $0.6502, showcasing significant volatility and trading opportunities. A key technical event was the breakout above the $0.635 resistance level, which has since flipped to become a crucial support zone. Further buying pressure established a higher support base near $0.648. This bullish structure was confirmed by volume analysis, which showed a notable spike at 07:15 GMT, with over 5.3 million ADA traded in a single minute, propelling the price upward. While the ADA/USDT pair showed strength, gaining 0.25% to trade around $0.5607, its performance against Bitcoin tells a slightly different story. The ADABTC pair registered a minor loss of 0.57% to 0.00000522, indicating that while ADA gained against the dollar, Bitcoin's own strength marginally outpaced it during the period. Conversely, the ADAETH pair rose 1.838% to 0.00030470, presenting a clear pair trading opportunity for those looking to capitalize on ADA's relative outperformance against Ethereum.

The bullish sentiment is further reinforced by strong on-chain fundamentals. According to data shared by TapTools, the number of staking addresses on the Cardano network has officially surpassed 1.3 million. This milestone underscores the network's robust and decentralized community of long-term holders, providing a stable foundation for the price. This growing base of staked ADA acts as a supply sink, reducing the liquid supply available on exchanges and potentially amplifying price movements on positive news. Interestingly, this price appreciation and positive sentiment have persisted despite recent data showing significant whale outflows, with over 270 million ADA being moved from large wallets in the past week. The market's ability to absorb this selling pressure and continue its upward trajectory suggests that strong accumulation from retail or other institutional players is offsetting the whale distribution. For traders, the key levels to monitor are the immediate support at $0.648 and the former resistance at $0.637. A sustained hold above these levels could set the stage for a retest of the $0.65 high and a potential move toward the next major resistance zone.