Cardano pulls back after testing $0.258 as momentum starts to fade
Cardano accelerated alongside the broader crypto market and briefly tested $0.258. The initial momentum is already beginning to fade, however, while an overbought RSI increases the risk of a deeper correction.
Sentiment toward risk assets improved after reports that the U.S. Treasury could deploy nearly $1 trillion from the Treasury General Account to expand its government bond buyback program.
The crypto-market rally also triggered a sharp increase in activity across the Cardano ecosystem. According to DeFiLlama, daily DEX volume reached roughly $21.47 million, while seven-day volume climbed to $122.22 million, up around 1,660% from the previous week. This suggests that the latest price advance has been accompanied by a substantial increase in trading activity across the ecosystem.
Over the past 24 hours, the network also recorded around 23,752 active addresses and 28,227 transactions. DeFi TVL, however, remains relatively modest at roughly $60.36 million.
Overbought RSI keeps $0.203 correction risk in focus
The scenario discussed in the previous analysis has fully played out. ADA held the 50-day SMA and rallied sharply alongside the broader crypto market, breaking above the 200-day SMA and testing $0.258.The initial momentum has since weakened, with the price pulling back into the $0.221–0.232 area. At this stage, the risk of further downside remains elevated.
If Bitcoin and Ethereum begin to lose momentum, the next major target for ADA would be support near $0.203.
The alternative scenario would require $0.221 to hold. In that case, buyers could attempt to push the price back toward $0.250. For now, however, this outcome appears less likely, as the RSI (14) remains in overbought territory and continues to point to technical overheating.
Broader crypto momentum remains key for Cardano
Over the coming days, ADA is likely to remain heavily dependent on the direction of Bitcoin and Ethereum. If the market leaders enter a profit-taking phase after their recent advance, Cardano could also extend its technical correction.The $0.221 area therefore remains the first major test for buyers. Holding this level would preserve the possibility of another move toward $0.250, while a break below support would increase the probability of a decline toward $0.203.
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