Is Cardano on the Edge of a Breakout as Ripple Partnership Rumors Grow?

The crypto community is buzzing again as Cardano founder Charles Hoskinson dropped hints about a potential collaboration with Ripple Labs. With ADA’s price movement tightening, many are asking if this could be the trigger for the next big breakout.

Why Cardano Price Could Surge Soon

Cardano’s price has been moving quietly in recent days, even as Ethereum grabbed headlines with a fresh all-time high. But beneath the surface, some important developments are shaping up.

Hoskinson’s Ripple comments – Over the weekend, Charles Hoskinson revealed he has been in discussions with Ripple about a possible partnership.
Ripple USD stablecoin (RLUSD) – One idea being floated is that Ripple’s fast-growing stablecoin could launch on Cardano. RLUSD went from zero supply in December to more than $680 million in circulation today.
Boost to Cardano’s ecosystem – Stablecoins are critical for any DeFi network, and Cardano has been lagging behind in this area. At the moment, the total stablecoin supply on Cardano is around $37 million, far lower than other major blockchains.

If Ripple chooses Cardano as a base for RLUSD, it would be a massive vote of confidence and could finally bring more liquidity into the ADA ecosystem.

Ripple Partnership: What It Could Mean

Hoskinson also mentioned that talks with Ripple aren’t just about stablecoins. The discussion has touched on broader blockchain integrations, including potential connections to Bitcoin DeFi. If such an arrangement comes through, Cardano could become a key hub linking XRP, Bitcoin, and other blockchain projects.

Interestingly, Hoskinson even floated the idea of a joint effort between Cardano, Near Protocol, and XRP for long-term collaboration.

Of course, caution is needed. This isn’t the first time Hoskinson has hinted at partnerships. Past remarks about working with Chainlink and even SpaceX never turned into reality. Still, the Ripple angle feels different because of the immediate utility it could bring.

Technical Outlook: ADA Charts Signal a Possible Breakout

From a technical perspective, ADA’s price action is setting up for a decisive move.

Symmetrical triangle pattern – ADA has been consolidating in a triangle formation since last year. With the price nearing the apex, a sharp breakout is on the horizon.
Triple bottom support – Cardano has tested the $0.27 level three times (January 2023, July 2023, and July 2024), forming a strong base.
Key resistance levels – ADA recently broke above $0.80, which now acts as support. A successful breakout could push the price toward $1.32, a level last seen in December.

However, if the price falls below the 50-week EMA around $0.71, the bullish scenario weakens. A drop back to $0.27 would then be possible.

The Bigger Picture

Cardano has long been seen as a project with huge potential but often criticized for moving slower than rivals. Adding a major stablecoin like RLUSD could finally change that perception. It would make ADA’s network more attractive to developers, traders, and liquidity providers, closing the gap with other leading DeFi platforms.

As someone who has been following ADA since 2021, I’ve seen how quickly market sentiment shifts when real-world use cases start appearing. If Ripple really does bring RLUSD to Cardano, it may spark the kind of excitement that ADA holders have been waiting for.

FAQs

1. What is the rumor about Ripple and Cardano?
Charles Hoskinson hinted that Ripple Labs may consider launching its RLUSD stablecoin on Cardano, along with other potential collaborations.

2. Why is a stablecoin important for Cardano?
Stablecoins bring liquidity and make DeFi activity easier. Cardano’s ecosystem has very little stablecoin adoption compared to Ethereum or Solana, so RLUSD could be a game-changer.

3. Could this partnership affect ADA’s price?
Yes. A Ripple partnership would likely bring more users and capital into Cardano, which could drive ADA’s price higher.

4. What price levels should traders watch?
Key resistance sits near $1.32, while strong support is around $0.71. A breakout above resistance could start a strong rally.

5. Can we fully trust Hoskinson’s statements?
While Hoskinson is the founder of Cardano, not all his past partnership hints have materialized. Investors should wait for official confirmation before making decisions.