Cardano holds key support at $0.36 while Solana Bridges unlock EVM liquidity

1. Solana’s liquidity can reach Cardano through existing bridges, with Base acting as a key routing layer.
2. Cardano (ADA) is testing long-term support near $0.36, indicating a potential near-term recovery.
3. Technical indicators suggest that a corrective phase may be coming to an end, opening the door for a phased recovery towards $0.45-$0.50.

The growing push for interoperability in the crypto ecosystem opens new avenues for liquidity between Solana and Cardano. According to blockchain expert DaveWhile a native Solana to Cardano bridge does not yet exist, assets can flow through Ethereum or Base using existing infrastructure.

Solana tokens can enter the EVM ecosystem via the new Solana-Base bridge powered by Chainlink CCIP. From there, bridges like Wanchain and ChainPort can transfer the packaged assets to Cardano, effectively creating a workable cross-chain route.

The basis is the routing and liquidity layer in this system. The team has been working to make cross-chain transactions easier. Finally, ADA’s ERC-20 tokens, such as Coinbase’s ‘cbADA’, help the Cardano chain better integrate within the EVM ecosystem.

These solutions do not ensure that Cardano returns to its original form. However, Cardano can then become a bridge in its own right, bypassing others if the Chainlink integration goes smoothly, improving Cardano’s position in a tough cross-chain market.

Cardano holds the key support at $0.36

ADA is currently trading at $0.3631 as it tests the lower bound of the long-term downward channel that has defined the move since the 2022 peak.

According to technical analyst Mr. BrownstoneAs long as the ADA is above the previous low of $0.27, it is a Wave (2) low. This will pave the way for an upward move after a prolonged correction over the next year and into 2025.

The price is still in a horizontal demand area, ranging from $0.38 to $0.40, which is also reflected in the channel support level. An area of ​​high technical importance that could reverse a potential correction.

Technical indicators point to possible recovery

Looking at Elliott Wave Analysis for ADA, it looks like it is completing a corrective wave (C) of a larger wave (II). This indicates that the current downtrend may have just ended. Also, the MACD is compressed below zero, but is showing the first signs of bullish convergence.

The volume profile indicates a strong trading range around $0.65-$0.70. It wouldn’t be an irrational target if ADA breaks out. However, the ADA can only make moves, and in the short term, resistances exist around $0.45-$0.50.

Historical examples of similar MACD formation at channel support levels resulted in multi-week rallies, and this indicates that ADA may be making a slow and incremental move to the upside.

Also read: Cardano (ADA) outbreak: 35% rise threatens the market