Cardano Quietly Mirrors 2021-Style Rally as 275M ADA Budget Moves Ahead

Key Notes

• The 275 million ADA budget proposal passed all 39 constitutional checks.
• Analyst highlights ADA’s current price trajectory similar to the 2021 bull run.
• ADA tests key support after wedge breakout, bullish setup still intact.

Cardano ADA $0.72 24h volatility: 4.6% Market cap: $26.09 B Vol. 24h: $1.70 B price may be facing short-term volatility, but recent developments suggest a potentially larger bullish structure is forming.

On July 31, the Cardano Foundation confirmed that all 39 Treasury Withdrawal governance actions, representing a cumulative treasury allocation of 275 million ADA, have passed constitutional assessment.

As an ICC member, we have thoroughly reviewed all 39 Treasury Withdrawal Governance Actions submitted under the Cardano Blockchain Ecosystem Budget administered by @IntersectMBO .

All were found to be Constitutional. ✅

Read our full rationale here: https://t.co/HlZMLpSU4V

— Cardano Foundation (@Cardano_CF) July 31, 2025

These proposals support infrastructure, research, community growth, and the 2025 Vision. Each proposal was evaluated using the Cardano Constitution and a publicly declared framework, reinforcing transparency and accountability.

Funds are set to be distributed via automated smart contracts. The Cardano Foundation also published a unified rationale explaining the methodology and legal basis behind the verification of each proposal.

Meanwhile, popular analyst Ali Martinez pointed out that ADA’s current chart structure closely resembles its price action before the massive 2021 bull run. According to him, while the current cycle is unfolding more slowly, ADA might be at the start of an “explosive” uptrend.

Cardano $ADA is showing the same price structure as the last cycle, only this time, it’s unfolding more gradually. And it feels like we’re right at the beginning of an explosive move. pic.twitter.com/xbg3phaz6x

— Ali (@ali_charts) August 1, 2025

Ada price pulls back but remains in bullish setup

At the time of writing, ADA is trading near $0.72, down by 8% in the past day amid broader market weakness . However, this retracement might be healthy, as the crypto recently broke above a multi-month falling wedge, known for trend reversals.

It is now retesting the breakout level as support. As long as it holds above this level, bullish setup remains intact.

On the daily ADA chart, the price has recently pulled back toward the lower Bollinger Band near $0.70. A bounce here could confirm support and offer upside toward the middle band near $0.80 and the $0.90 resistance level.

The RSI has cooled off from near-overbought levels, indicating a potential reset that could follow a highly-anticipated ADA price rally to $4 if buyers return.

The MACD is currently showing a recent bearish crossover but remains above the zero line. This generally means that the broader trend is still intact unless deeper downsides follow.