- Cardano launched the Cardinal Protocol, its first Bitcoin-focused DeFi solution, enabling wrapped BTC transfers via NFTs without external liquidity providers.
- Despite this innovation, ADA’s price remains stalled below $0.70, signaling trader caution and resistance near key technical levels.
Cardano Launches First Bitcoin DeFi Protocol—but ADA Stalls Below $0.70
Cardano (ADA) has made a groundbreaking move with the launch of its first Bitcoin DeFi protocol, Cardinal, designed specifically for Bitcoin users. However, despite the major milestone, ADA’s bullish momentum appears to be losing steam, with the price stalling under $0.70—lagging behind other top cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).
Currently trading around $0.68, ADA has dropped over 1% on Tuesday, signaling hesitation among traders even after rebounding from support at $0.62.
Cardinal Protocol: A DeFi Bridge Between Bitcoin and Cardano
The Cardinal Protocol introduces a novel way to bring wrapped Bitcoin onto the Cardano blockchain. Using Bitcoin Ordinals as Cardano NFTs, the protocol mints wrapped BTC UTXOs that maintain a 1:1 peg with original BTC while ensuring full transferability across the Cardano network.
What sets Cardinal apart is its independence from external liquidity providers. Instead, it implements a transfer-of-ownership mechanism and integrates multi-signature security using Bitcoin’s MUSIG2 and Cardano’s Mithril protocol for seamless verification. The protocol enables on-demand burning of NFTs to redeem Bitcoin, offering flexibility and efficiency to BTC holders exploring decentralized finance (DeFi) on Cardano.
Technical Outlook: ADA Bulls Hit a Wall
Despite Cardinal’s launch, ADA’s technical setup reveals a resistance wall near $0.70, closely aligned with the 50-day, 100-day, and 200-day EMAs, currently near $0.71. This confluence of resistance is proving tough to crack.
The Relative Strength Index (RSI) is hovering around the neutral 50 mark, showing a lack of bullish conviction. Meanwhile, the MACD indicator hints at a potential buy signal, which could reignite interest if confirmed in upcoming sessions.
A breakout above $0.71 could open the door to $1.00, a key psychological and technical level. However, failure to break above current resistance could send ADA back to $0.62 or even $0.50 as traders reassess the bullish thesis.
