Bonk (bonk) 
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Cardano (ADA) experienced a pullback on Monday, even after a significant milestone was achieved with the first bridgeless transfer of Bitcoin between the Bitcoin and Cardano networks. The price of ADA dropped to $0.6595, marking a 12.3% decline from its April high and a 50% decrease from its 2024 peak. This decline coincided with broader market weakness, including a drop in Bitcoin and other altcoins, as well as a downturn in the stock market following geopolitical developments.
Key Milestone: Bridgeless Bitcoin Transfer
Despite the price drop, Cardano made headlines with a major network achievement. BitcoinOS demonstrated the first-ever bridgeless transfer of Bitcoin (BTC) between the Bitcoin and Cardano mainnets. This breakthrough eliminates the need for intermediaries like bridges or custodians, a significant step forward in blockchain interoperability.
The process involved locking 1 BTC on Bitcoin’s Layer 1 using the BitSNARK protocol. The BTC was then wrapped into a new token called xBTC, a non-custodial, cryptographic, and programmable asset similar to wETH on the Ethereum network. The xBTC was subsequently transferred from a Bitcoin wallet to Sundial’s Cardano wallet, showcasing seamless interoperability between the two blockchains.
“On May 4, 2025, we successfully demoed the first *bridgeless* transfer of BTC between Bitcoin and Cardano mainnet.” – BitcoinOS
This innovation is expected to enhance Cardano’s capabilities, attract more users, and increase the total value of assets locked (TVL) on its blockchain.
Bitcoin Staking on the Rise
The development also highlights the growing popularity of Bitcoin staking within the decentralized finance (DeFi) ecosystem. According to recent data, nearly $10 billion is locked across 58 DeFi protocols focused on making idle Bitcoin productive. Notable protocols in this space include Babylon Protocol, Lombard Finance, and Solv Protocol.
Cardano’s advancements in enabling Bitcoin transactions without bridges could position it as a significant player in this burgeoning sector, further boosting its appeal to crypto investors and developers alike.
ADA Accumulation by Large Holders
Another positive signal for Cardano is the continued accumulation of ADA tokens by large investors, or “whales.” On-chain data reveals that wallets holding between 1 million and 10 million ADA have increased their holdings to 5.76 billion, up from 5.65 billion in April. Additionally, wallets with balances between 10 million and 100 million ADA have grown their holdings to 12.8 billion.
This accumulation trend suggests confidence in Cardano’s long-term potential, even as short-term price pressures persist.
Technical Analysis: Bearish Momentum Persists
From a technical perspective, ADA’s price remains under pressure. Since reaching a high of $1.328 in November last year, the token has been trading within a descending channel, with recent attempts to break above the upper boundary failing. This indicates reluctance among buyers to commit at higher levels.
ADA has also dropped below the critical 61.8% Fibonacci retracement level at $0.68 and is trading under the 100-day Exponential Moving Average (EMA). The Relative Strength Index (RSI) has fallen below the neutral 50 mark, reinforcing the bearish outlook.
If this downward momentum continues, ADA could test the next major support zone around $0.50. Conversely, a recovery above the 100-day EMA and the top of the descending channel would be needed to shift sentiment back to the bullish side.
Outlook for Cardano
While short-term price action for Cardano remains bearish, its recent technological milestone and the growing interest in Bitcoin staking present long-term growth opportunities. The continued accumulation by large holders further underscores confidence in the network’s future prospects. Investors should monitor key levels and developments in the ecosystem to assess potential entry or exit points.
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