In the ever - evolving landscape of virtual currencies, 2025 has witnessed a dynamic shift in the rankings and performance of various digital assets. Bitcoin, Ethereum, and Ripple continue to be at the forefront of the market, while Cardano has shown both promising signs and potential risks.
Bitcoin, the pioneer of cryptocurrencies, remains the dominant force in the market. It is often seen as a store of value, similar to digital gold. Bitcoin's price movements have a significant impact on the entire cryptocurrency market. Its market capitalization and widespread adoption make it a key player in the global virtual currency ranking. Ethereum, on the other hand, is well - known for its smart contract capabilities. It has a large developer community and is the foundation for many decentralized applications (DApps). Ripple, with its focus on cross - border payments, has also carved out a niche in the market, especially among financial institutions.
Cardano (ADA) has had a roller - coaster ride in 2025. After a period of lagging behind Bitcoin's sharp rise earlier, it finally showed strong activity. As of July 20, 2025, Cardano ($ADA) was priced at around $0.872, successfully breaking through the important psychological and resistance level of $0.85. This upward movement came during Bitcoin's consolidation phase after hitting a new all - time high, creating an opportunity for altcoins like ADA.
However, before this recent rally, Cardano had faced some challenges. Since the end of May, its price has been on a downward trend. Despite a brief 46% rebound in April to early May when Bitcoin prices soared, ADA failed to break out of the low - point range of the past six months, leading to a bearish market sentiment.
There are several factors suggesting that Cardano may experience a pullback. First, looking at the development activity, according to Santiment data, the development activity has been declining since February. Although the number of daily active addresses has remained stable, long - term investors need to pay attention to this trend. A decrease in development activity may indicate a slowdown in the project's progress, which could potentially affect the price negatively.
The 90 - day MVRV (Market Value to Realized Value) ratio shows that while holders have made profits in the past 90 days, the proportion of profitable holders has been rapidly decreasing. This means that any price rebound may face strong selling pressure as profitable holders look to cash out. Additionally, the average coin age has been decreasing, indicating a wide distribution of coins within the network. To support a price recovery, this trend needs to change.
From a technical analysis perspective, the market structure turned bearish on May 30. The key support level is $0.51, and if it breaks below this level, it may test the support at $0.427. As of now, although Cardano has broken through the $0.85 resistance level, it still faces potential selling pressure at higher price levels. The next resistance area on the 4 - hour K - line chart is in the range of $0.90 - $0.95, followed by the psychological barrier of $1.00. If the buying momentum weakens, there is a possibility of a pullback to the support levels around $0.85 and $0.836.
Despite the potential pullback risks, there are also reasons to believe that Cardano's recent decline could be a short - term adjustment rather than a long - term trend. Chain - on data and several key technical indicators suggest that as the price approaches important support areas, some bottom - fishing funds have started to enter the market.
Cardano's 30 - day MVRV ratio has dropped to - 9.34%, which usually indicates that the asset is undervalued. Historically, when the MVRV reaches a similar level, there has often been a strong rebound. For example, in April, when the price dropped to $0.55, it later rebounded to $0.84, and in February, after reaching $0.60, it rose to $1.13.
Moreover, Cardano is a blockchain - based platform with unique features. It uses the Ouroboros consensus mechanism, which provides higher security and scalability. Its smart contract platform, Plutus, has been launched, allowing developers to create and deploy complex DApps. The introduction of Hydra, a second - layer solution aimed at improving transaction speed and scalability, also makes Cardano more efficient in handling large - scale transactions, which could attract more developers and users in the long run.
In the 2025 worldwide virtual currency ranking, Bitcoin, Ethereum, and Ripple maintain their leading positions, but Cardano has also shown its potential. While there are clear signs of a possible pullback for Cardano due to factors such as selling pressure and declining development activity, there are also positive indicators suggesting that this could be a short - term setback. Investors should closely monitor key indicators such as the average coin age, development activity, and MVRV ratio to make informed decisions. As the cryptocurrency market is highly volatile, it is crucial to conduct thorough research (DYOR) before making any investment decisions.
Q: What is the current price of Cardano? A: As of July 20, 2025, Cardano ($ADA) was priced at around $0.872.
Q: Why is Cardano at risk of a pullback? A: There are multiple reasons, including declining development activity since February, a decreasing proportion of profitable holders in the 90 - day MVRV ratio, and a decreasing average coin age, which may lead to strong selling pressure on price rebounds.
Q: Is the decline in Cardano's price a long - term trend? A: Chain - on data and key technical indicators suggest that it is more likely a short - term adjustment. The 30 - day MVRV ratio indicates that the asset may be undervalued, and historical data shows that similar situations often lead to rebounds.
Q: What are Cardano's unique features? A: Cardano uses the Ouroboros consensus mechanism for higher security and scalability. It has a smart contract platform called Plutus and a second - layer solution named Hydra to improve transaction speed and efficiency.