Cardano has moved back into focus after the Cardano Foundation approved a 300 million ADA governance plan, and traders watched key chart levels. ADA also tested an important Fibonacci retracement level while derivatives activity and spot volume increased.
The move placed governance and price action in the same frame. The Foundation backed the proposal as a tighter treasury limit, while the market tracked support near $0.2548 and resistance near $0.257 to $0.258.
Cardano Foundation Backs 300M ADA Governance Action
The Cardano Foundation said it voted yes on the “Net Change Limit of 300 Million ada for Epochs 613–713” governance action. It said the proposed cap falls within its margin of acceptance and roughly matches 2025 treasury inflows.
In its rationale, the Foundation said the 300 million ADA figure aligns with about 306.9 million ADA in 2025 inflows. It also said the ecosystem ran a deficit in the 2025 NCL cycle, so a tighter 2026 limit remains acceptable.
The Foundation added that many approved treasury withdrawals have not yet resolved base-layer bottlenecks. It named TPS, finality, and throughput among the areas still facing pressure.
It also said the proposal keeps the budget cycle on a roughly 16.5-month timeline from Epoch 613 to 713. That shift moves the cycle away from the year-end holiday period and toward a mid-year schedule.
Treasury Limits and Constitutional Debate Remain Central
The Foundation said the current 350 million ADA NCL for Epochs 613–713 remains constitutionally valid under the present language. At the same time, it said an affirmative Constitutional Committee vote on the new plan could reduce uncertainty around whether a valid NCL exists.
It urged Constitutional Committee members to clarify whether such a vote is required for an NCL. That point remains central because governance participants continue to examine process rules and the scope of committee approval.
The Foundation also said the new proposal would supersede the previously approved 350 million ADA NCL for the same period. It described that step as a move toward stricter fiscal discipline tied to treasury inflow data.
That approach sets the political angle for Cardano price prediction discussions. Traders now have a governance event that points to tighter spending conditions and a clearer budget path.
ADA Price Tests Support after Sharp Recovery
On the market side, ADA tested the 0.5 Fibonacci retracement at $0.2614 after rebounding from the low-$0.24 area. Buyers regained control after a dip near $0.247, and the price climbed back above $0.255.
Open interest rose 3.87% to $428.45 million, while volume jumped 33.39% to $779.84 million. The rise followed news around Archax integration for EU-regulated tokenization.
The short-term chart showed a series of higher lows during the recovery phase. That structure pointed to improving intraday momentum as ADA tried to build support above the prior pivot zone.
The immediate support area formed near $0.2548, while the next resistance sat around $0.257 to $0.258. A move above that band could support another push higher toward the broader channel resistance near $0.27 to $0.29.
Trendline Break Keeps Sellers Active on the 4-hr Chart
The 4-hour ADAUSDT chart also showed a break below an ascending trendline that had supported the price since early February. That breakdown followed a rejection near the upper resistance zone around $0.30.
Source: X
The ADA price later tried to stabilize below the broken trendline, but the structure remained fragile. Unless ADA reclaims that trendline and holds above it, the chart still points to downside pressure.
The red dotted ascending trendline was noted near $0.2458 as a lower support reference. If ADA loses the current recovery structure, the $0.250 to $0.247 range becomes the next area to watch.
Source: https://coinpaper.com/15283/cardano-price-prediction-as-foundation-approves-300-m-ada-governance-plan
