On June 25, 2025, the daily chart of Cardano (ADA) displayed a bullish flag pattern, signaling a possible upward continuation. This structure formed after ADA’s earlier price surge, followed by a consistent downtrend within two parallel red lines, which now make up the flag’s body.
A bullish flag forms when a strong upward move, known as the flagpole, is followed by a short-term downward or sideways consolidation inside a channel. This pullback often appears controlled, and it usually indicates that buyers are regrouping before another upward move.
In this setup, ADA trades at $0.5767, slightly below the 50-day exponential moving average (EMA), which sits at $0.6631. That EMA level may act as the first technical resistance during a breakout attempt. However, if bulls push the price above the upper red trendline of the flag, the pattern would confirm.
Once confirmed, the flag’s height projects a 49% potential price increase from the current level. This breakout could take the ADA price up toward the $0.8565 zone — a key horizontal resistance marked in blue on the chart. That level aligns with a previous local top from late March.
Volume remains moderate but should increase sharply if the breakout begins. Rising volume during an upward move would further support the bullish thesis. Until then, the price action stays inside the flag, and traders are watching for a clear breakout above the flag’s upper boundary.
RSI Shows Weak Momentum but Hints at Recovery
The daily Relative Strength Index (RSI) chart for Cardano (ADA) showed the RSI line at 36.96, with the 14-day moving average at 35.02. The RSI indicator helps identify overbought or oversold conditions in the market. Values below 30 suggest oversold territory, while values above 70 signal overbought levels.
Although the RSI is still below the neutral 50 mark, it has started to rise slightly from near-oversold levels. This slight upward shift, combined with a bullish flag on the price chart, may indicate early signs of buying interest returning.
However, the RSI must climb above 50 to fully confirm bullish momentum. Until then, the market remains cautious, with weak strength but potential for trend reversal if price and volume also increase.
DMI Confirms Weak Bullish Strength on June 25
On June 25, 2025, the Directional Movement Index (DMI) for Cardano (ADA) showed a weak but building bullish setup. The +DI (orange) line stood at 28.08, above the -DI (red) line at 25.34, while the ADX (blue) measured at 14.49.
The DMI tracks trend direction. When the orange line (+DI) is above the red line (-DI), it suggests bulls have the upper hand. In this case, the +DI has crossed above the -DI, which indicates potential buying strength. However, the ADX, which shows trend strength, remains low—well below the 20 mark—signaling that the trend is still weak or uncertain.
This means the current bullish momentum is starting to develop, but it has not yet gained strong traction. For a solid trend to form, the ADX needs to rise above 20, confirming that either bulls or bears are truly in control.
Balance of Power Tilts Bearish on June 25
The Balance of Power (BOP) indicator for Cardano (ADA) showed a reading of -0.51, signaling that sellers currently have the upper hand. The Balance of Power measures the strength of buyers versus sellers by comparing price movements within each period.
Negative BOP values, like today’s, suggest that sellers are dominating the market. This indicates that even though buyers may still be active, they are failing to push the price higher. A reading below zero usually supports bearish sentiment, especially if confirmed by other indicators.
Although the BOP fluctuates quickly and often remains volatile, its current position below the midpoint shows that bears continue to pressure ADA despite recent attempts to recover. A sustained move back above zero would be needed to confirm a shift in market control.
Cardano’s Midnight to Power DeFi for XRP Ecosystem
Meanwhile, Charles Hoskinson, the founder of Cardano, confirmed that Midnight, the network’s privacy-focused sidechain, will serve as the DeFi layer for the XRP Ledger.
He made the announcement during a live AMA, where he explained how Midnight will give XRP holders access to decentralized finance tools without moving their tokens off-chain. The integration will enable features like staking, lending, and liquidity pools, which XRP’s native network does not support due to the lack of smart contract capability.
Midnight to Enable Private DeFi for XRP
Midnight uses zero-knowledge cryptography to protect user data while running smart contracts. Through this layer, XRP users will gain access to DeFi apps while keeping their assets secured on the XRP Ledger.
Hoskinson noted that this collaboration does not seek to replace XRP’s core identity. Instead, it adds functionality. Users can retain their assets on-chain and still participate in advanced yield-generation options.
As part of a broader integration, Cardano’s Lace Wallet will soon support XRP. This will allow users to manage XRP and other tokens within the same interface.
Additionally, Cardano is in talks with Ripple to bring RLUSD, its USD-backed stablecoin, into the Cardano ecosystem. If added, RLUSD will serve as a stable DeFi liquidity option on Midnight.
Hoskinson also confirmed discussions with Ripple CTO David Schwartz and CEO Brad Garlinghouse. These talks focus on creating a secure and smooth connection between Midnight and the XRP Ledger, blending Cardano’s DeFi capabilities with XRP’s cross-border payment strength.
NIGHT Token Airdrop for XRP Holders
To encourage early adoption, Cardano launched two airdrop campaigns: the Glacier Drop and the Midnight Airdrop. XRP holders who had at least $100 worth of XRP on June 11, 2025, are eligible to receive NIGHT tokens. The supply totals 1.2 billion NIGHT, used for governance and activity on Midnight.
Midnight already runs on testnet, and developers have deployed privacy-focused apps since late 2024. The mainnet launch is expected later in 2025. The chain supports multiple networks, including Ethereum, Solana, Avalanche, and XRPL.
