Injective said it has become the first blockchain to establish a live on-chain IBC connection to Cardano, with the rail currently active on testnet. The setup is designed to let ADA move into the Injective ecosystem and INJ move into Cardano’s, creating shared infrastructure for developers working across both networks.

The update arrived as Cardano’s ADA eased 1.44% on Aug. 6 to $0.1882 after running into resistance at the 100-day exponential moving average. At the same time, ADA futures volume reportedly climbed 380% over the past week, rising from $150 million to $650 million and signaling a sharp increase in trader activity.

ADA stalls near a key technical level

On the daily chart, ADA cooled off at the 100-day EMA, listed at $0.1964. The session opened at $0.191, reached $0.1923, then dropped to an intraday low of $0.1858 before settling at $0.1882.

The move followed a strong advance tied to an ascending triangle breakout. The chart cited in the source outlined a support area between the 20-day EMA at $0.1762 and the 50-day EMA at $0.1765, with the broader structure remaining intact as long as that zone holds.

The Parabolic SAR was placed at $0.1641, still below price and therefore consistent with a bullish trend reading. In that setup, a recovery back above the 100-day EMA would keep attention on a first upside target near $0.22, while a daily close below $0.1762 would weaken the breakout case.

Futures activity accelerates

Market attention also shifted to derivatives, where analyst LuckSide Crypto said ADA futures volume surged 380% in one week to $650 million from $150 million. That jump points to a much larger amount of directional positioning around the token.

Higher futures participation can support bigger price swings in either direction. The source noted that strong volume may help extend momentum during a rally, but it can also leave the market exposed to sharp reversals if sentiment shifts or if outside catalysts disappoint.

The same commentary compared ADA’s current structure with its 2020-2021 pattern and cited an analyst target of $2.90. That projection remained speculative in the source and was tied in part to the idea that broader market strength, including a possible Bitcoin move toward the $68,000 to $71,000 range, could lift ADA alongside the wider market.

Injective’s Cardano link is live on testnet

The infrastructure announcement centered on interoperability rather than price. Injective said the new connection makes it the first chain with a live on-chain IBC rail to Cardano, though the integration is still operating on testnet rather than mainnet.

If expanded successfully, the link would allow assets to move between the two ecosystems, specifically ADA into Injective and INJ into Cardano. The arrangement also gives developers a common layer for building applications that rely on both networks.

Supporters described the launch as part of a broader shift toward blockchains that gain value by connecting to other ecosystems instead of remaining isolated. The source did not indicate a mainnet date or provide figures on expected usage.

What traders were watching next

The source framed the near-term ADA outlook around whether support between $0.18 and roughly $0.1765 can hold during the current pullback. A successful retest of that area, followed by a move back above $0.1964, would keep the first chart target near $0.22 in view.

On the downside, a deeper break through the support cluster could invalidate the breakout structure and shift focus toward the Parabolic SAR near $0.1641. The article also said traders were watching external developments, including the CLARITY Act timeline and a U.S. jobs report, as potential factors that could influence positioning.

For now, the confirmed developments are the live Cardano-Injective IBC connection on testnet, ADA’s rejection at the 100-day EMA, and a sharp rise in futures volume. Whether those conditions translate into a larger directional move remains unresolved.

Source: Coin Edition