- Cardano’s ADA token has jumped 5% following major interoperability announcements.
- The news includes upcoming XRP support for the Lace wallet and a new Bitcoin DeFi protocol.
- The ADA price is now testing key resistance near $0.71 as the market digests the news.
Cardano Founder Charles Hoskinson has let bygones be bygones with a major two-pronged strategy to position Cardano as a central hub for cross-chain interoperability, announcing both upcoming XRP support for the Lace wallet and a revolutionary new protocol designed to bring Bitcoin DeFi to the ecosystem.
The move underscores Cardano’s larger ambition to become a decentralized financial operating system that can connect disparate blockchain networks. The announcements signal a significant step forward in bringing two of the industry’s largest communities, Bitcoin and XRP, directly into the Cardano environment.
A Bridge to XRP: Lace Wallet Continues Multi-Chain Expansion
In a recent AMA session, Hoskinson confirmed that XRP support would soon be integrated into Lace, the light wallet developed by Input Output Global (IOG).
Launched in April 2023, Lace has been on a steady multi-chain journey, having already integrated Bitcoin testnet support in June 2024. The addition of XRP marks the next phase of its evolution into a robust, multi-chain gateway.
Cardano Releases “Cardinal” Protocol for Bitcoin DeFi
In a parallel announcement, Hoskinson also introduced the Cardinal Protocol, a groundbreaking step toward enabling Bitcoin-based DeFi on Cardano. Developed by IOHK’s CTO Romain Pellerin, Cardinal allows Bitcoin UTXOs to be “wrapped” into DeFi-enabled assets on Cardano that can be staked, lent, or used as collateral.
Unlike traditional wrapped BTC models that rely on custodians or federated networks, Cardinal uses MuSig2 multisig cryptography and BitVMX-powered off-chain logic to create a trust-minimized, verifiable DeFi ecosystem. These wrapped assets maintain 1:1 parity with BTC and can move between chains such as Ethereum, Solana, and Avalanche.
Cardinal also introduces a cross-chain Ordinals bridge, allowing Ordinals to be wrapped and utilized in DeFi ecosystems–borrowed, auctioned, or staked, all while preserving provenance.
Cardano (ADA) Price Analysis as Bulls Watch Key Resistance
While Cardano’s ecosystem expands, its native token ADA is trading at $0.7000, up 5% on the day. The Bollinger Bands are starting to constrict, indicating reduced volatility and an impending directional move. The 20-day SMA is near the current price at $0.7084, acting as the immediate resistance, while the lower band near $0.6188 may offer support.
Related: Two Big Wins for Cardano: Franklin Templeton Joins Network, NBX Launches Key Stablecoin
The Relative Strength Index (RSI) sits at 48.19, suggesting a neutral momentum, but its recent recovery from oversold territory hints at potential upside if buyers return. A daily close above the $0.71 zone could target the $0.80 psychological level next, while a breakdown below $0.62 would likely trigger a retest of early 2024 lows.
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