Introduction Good morning, crypto enthusiasts, and welcome to your BitMorpho Daily News & Fundamentals Report for Wednesday, December 3, 2025. The broader market is in a phase of expansion, with global crypto capitalization pushing above $3.23 trillion, yet capital remains heavily skewed toward Bitcoin, leaving secondary networks like Cardano (ADA) to fight harder for incremental flows. Today, the action for ADA centers on a tentative but structurally significant rebound attempt near critical support levels, while macroeconomic headwinds particularly stubborn inflation in the US and geopolitical maneuvers in Europe continue to shape the risk environment. For Cardano, the on-chain picture shows a compelling conflict: while the asset attempts to break free from its multi-month falling channel, both retail and smart-money sentiment are reportedly aligning to favor a bullish reversal near the $0.37 support region. This emerging strength is reportedly being fueled by increased short liquidations, a sign that trapped bearish positions are accelerating any upward momentum. Despite this, the network is still grappling with what analysts term a "lack of interoperability and slow DeFi expansion," leading some investors to rotate capital into newer, utility-focused protocols. On the fundamental front, activity from community initiatives like Palmeconomy is providing social sentiment support, even without concrete token announcements. On the macro side, global risk assets are reacting to the continuing narrative around central bank policy. In the US, the looming December FOMC meeting follows recent reports showing annual inflation holding near 3.0%. This sticky inflation is keeping the Federal Reserve's next moves under scrutiny, creating uncertainty that often pressures risk-sensitive assets like ADA. Meanwhile, the EU is set to unveil its new Economic Security Doctrine today, a strategy aimed at reducing dependencies and strengthening resilience amid global pressures from US tariffs and China's export controls. Such geopolitical maneuvering can inject volatility into global markets, which is always a key factor for on-chain assets. We are at a pivotal moment for ADA: can the strengthening internal buying pressure overcome the external macroeconomic uncertainty? Stay tuned as we monitor the follow-through strength on the chain. News Analysis This is the main body of the BitMorpho Daily News & Fundamentals Report for Wednesday, December 3, 2025. *** ADA Price Action: Rebound Attempt Near Critical Support Cardano (ADA) is currently navigating a precarious technical juncture, attempting a tentative rebound after recent downward pressure. The asset has seen increased trading volume, with reports indicating ADA surging around 14% in the last 24 hours to reclaim the 0.45 price level, outperforming the broader market’s recovery of about 6.8%. This move has seen the Relative Strength Index (RSI) move out of the oversold territory, signaling that immediate selling pressure may be easing. However, this rally is occurring near what analysts are watching as a critical support region, with some technical breakdowns noting immediate resistance at the 0.3937 mark. A decisive break above this could target the 0.4114 to 0.4274 range, though the broader market's capital skew toward Bitcoin remains a headwind for sustained altcoin momentum. On-Chain Metrics Show Divergent Investor Interest On-chain data suggests a fascinating split in investor behavior that might be fueling the current price action. The context provided mentioned that the asset is attempting to break a multi-month falling channel, supported by reports of increased *short liquidations*, suggesting bearish traders are being squeezed out, which can accelerate upward momentum [cite: context]. Further supporting this bullish internal pressure, analysis has revealed significant *whale buying*, with large wallets increasingly holding long positions, and the derivative market's funding rate turning positive a sign that long-position holders are paying short-position holders. In terms of ecosystem health, past data showed Cardano’s DeFi Total Value Locked (TVL) hitting a three-year high, driven by protocols like Liqwid and Minswap. While recent data is less definitive on TVL's current status, the network is clearly trying to overcome a historical deficit in DeFi liquidity, with a major community-approved proposal seeking to allocate approximately 30 million in ADA to onboard essential infrastructure like stablecoins and cross-chain bridges to bolster the economic base heading into 2026. Ecosystem Developments and Community Sentiment The Cardano community remains vocal, often signaling an underestimation of the network's long-term infrastructure build relative to its current market cap compared to rivals like Solana. Community support is being bolstered by grassroots efforts, such as the on-the-ground activity reported by the Palmeconomy initiative, which acts as a social sentiment datapoint even without formal token announcements. Looking ahead, December is shaping up to be a pivotal month for core network development, which could act as key catalysts for ADA. Specifically, investors are anticipating the launch of the Midnight sidechain on December 8th, a privacy-focused layer that promises to enhance enterprise adoption through zero-knowledge proof capabilities. Furthermore, the Cardano Foundation has reportedly voted to increase ADA's listing visibility across exchanges, with Coinbase scheduled to commence round-the-clock trading starting December 5th, which could provide a significant lift in accessibility and volume. Regulatory and Macro Factors Persist While on-chain dynamics show signs of internal strength, the external regulatory and macroeconomic environment continues to cast a shadow. The narrative around US Federal Reserve policy, driven by stubborn inflation figures, remains a primary source of uncertainty for risk assets like ADA [cite: context]. On the global stage, the EU is set to unveil its Economic Security Doctrine today, a move that injects potential volatility into global markets as it reshapes trade dynamics [cite: context, eu: 6]. In the crypto-specific regulatory sphere, scrutiny on Proof-of-Stake networks persists in the US, while the industry awaits MiCA compliance deadlines in Europe. These macro pressures are currently contributing to an environment where capital rotation, as noted in the introduction, favors newer, utility-focused protocols over established Layer-1s facing structural execution challenges [cite: context, 14, 13]. The battle for ADA today is clear: can the acceleration of on-chain accumulation and pivotal ecosystem launches translate into enough buying pressure to decisively break through technical resistance and overcome the lingering macroeconomic caution? Outlook Conclusion: ADA at a Technical Crossroads Amid Bullish Undercurrents Cardano (ADA) closes this Wednesday navigating a significant technical pivot point. The 14% surge in the last 24 hours, outpacing the general market and pushing the price past 0.45, has clearly alleviated immediate oversold conditions, as reflected by the RSI moving higher. [cite: context] While the rally is commendable, it is currently situated near a zone of technical contention, with initial resistance noted around the 0.3937 mark. [cite: context] The overall fundamental outlook leans Mixed to Cautiously Positive. The technical bounce is being underpinned by strong on-chain activity: significant whale accumulation, positive derivatives funding rates, and notable short liquidations suggest underlying bullish conviction is squeezing out bearish sentiment. [cite: context] However, the persistent capital dominance of Bitcoin remains a structural headwind that could cap any sustained altcoin breakout. For the next 24-48 hours, investors must closely monitor whether ADA can secure a decisive close above the mentioned resistance levels, specifically targeting the 0.4114 to 0.4274 range. [cite: context] A failure to hold the recent gains near critical support, combined with a market-wide pullback, could signal a swift retest of lower levels. Conversely, a breakout could signal the start of a more significant corrective wave. *** *Disclaimer: This summary reflects the market data presented in the body of the report and does not constitute financial advice. Always conduct your own due diligence before making investment decisions.*