Coinbase Launches Wrapped ADA on Base Network

Cardano is showing potential signs of a trend reversal, driven by Coinbase’s recent introduction of wrapped ADA (cbADA) on the Ethereum layer 2 network, Base. Each cbADA token is fully backed 1:1 by ADA held in Coinbase custody, with publicly verifiable reserves, creating a new bridge between Cardano tokens and Ethereum-based decentralized finance (DeFi) protocols.

Increased Utility for ADA Holders

The release of cbADA broadens ADA’s utility by enabling holders to engage in lending, borrowing, and liquidity provision on DeFi platforms such as Uniswap, PancakeSwap, and Aerodrome Finance—features previously unavailable natively within the Cardano ecosystem. This development effectively links Cardano more closely to the larger Ethereum DeFi market.

Midnight Sidechain and NIGHT Token Airdrop

Another factor supporting Cardano’s outlook is the upcoming launch of Midnight, a privacy-focused sidechain that plans to distribute its governance token, NIGHT, through a significant airdrop called the Glacier Drop. To claim NIGHT tokens, users must interact with the Cardano network, which is expected to boost short-term on-chain activity and encourage further ecosystem growth as NIGHT powers privacy-enabled applications.

Technical Analysis and Market Performance

Currently trading around $0.57, ADA has experienced some downward pressure, dipping approximately 24% over the past month. Trading volume and derivative open interest have slightly decreased, suggesting reduced speculative activity. Technical indicators present mixed signals: the relative strength index (RSI) approaches oversold levels and has started to rise, while Bollinger Bands have contracted indicating potential price consolidation. Momentum oscillators hint at a positive shift, although moving average convergence divergence (MACD) signals minor bearish divergence.

Future Price Prospects

ADA remains below its 50- and 200-day moving averages, advising caution for traders. Should cbADA gain traction in DeFi or the Midnight airdrop stimulate transaction volume, ADA could test resistance in the $0.60–$0.62 range and possibly aim for $0.70 if upward momentum sustains. Conversely, a failure to maintain the $0.55 support could open the door to further declines toward the $0.52 level.

Conclusion

The combination of Coinbase’s cbADA launch expanding ADA’s DeFi interoperability and the anticipated Midnight sidechain development could mark a turning point for Cardano. While the near-term outlook carries some risks, these ecosystem advancements provide a positive foundation for a potential trend reversal and renewed interest in ADA.