Cardano price rally reaches 20% in seven days leading to August 27. The move comes as broader crypto sentiment shifts to extreme greed.
Bitcoin moved to $80,000 during this period. ADA’s rally has now drawn scrutiny from experts.
Why Cardano price rally attracts criticism
Zero Knowledge founder Austin Campbell questioned the move. He said he did not understand why ADA was gaining as much as Bitcoin. He added that the rise could be due to low liquidity.
“Something that has no utility and no fundamental way to value it is maybe an easy fade,” Campbell said. “It just caught a bid in the nonsense and went up more because there was zero liquidity on it.”
He was not convinced by many altcoins’ performance. He said most are just gaining due to correlation with BTC. Hyperliquid is an exception, he noted.
Cardano DeFi activity slumps
DeFiLlama data shows TVL has dropped significantly. It fell from 509 million ADA on January 1, 2026. It now stands at 272 million ADA. Cardano has shed 272 million ADA from its TVL in 2026 alone.
DEX volumes have also dropped sharply. They fell from $56 million on August 22. They now sit at $977,464. These volumes have dropped by 98% in five days.
TokenTerminal shows monthly revenues have declined. They fell from $20,000 in January 2026. They now sit at $8,000 in August 2026.
This declining network activity comes ahead of the Dijkstra upgrade. The first phase rolls out in Q4 2026. The upgrade aims to improve speed and security.
Cardano’s open interest sheds $92M
CoinGlass data shows open interest has dropped. It fell from $582.14 million on August 22. It now stands at $497.18 million. The drop follows $18 million in liquidations between August 22 and August 27.
The long/short reading of 0.89 suggests short sellers dominate. They are betting that the price will fall as traders book profits.
Futures trading activity has also faded. Volumes dropped by 12% to $479 million at the time of writing.
Cardano price forecast as ascending channel holds
ADA is up by 1% today, August 27. It trades at $0.217 at the time of writing. Extreme greed in the broader crypto market overshadows falling network activity.
These gains leave ADA’s ascending channel intact. This suggests an uptrend is still in play despite pullbacks.
If ADA moves above the upper trendline resistance, it could reach $0.24. This is the 200-day EMA level. A rally above this EMA would confirm a bullish long-term forecast.
The midline of this rising channel sits at $0.19. This also coincides with the 100-day EMA. A move below this support could turn the trend bearish.
The MACD line is positive and rising. This suggests momentum still favors bulls. This supports the bullish thesis of a move to $0.24. Positive sentiment across the broader crypto market is required.