Cardano has announced a major partnership that could strengthen the token’s retail use case by making ADA usable for grocery purchases at Spar stores across Switzerland.

But can this development revive ADA’s price, which has been under pressure since December?

According to an official announcement, Cardano users can now pay for groceries in 137 Spar supermarkets across Switzerland following the latest Open Crypto Pay integration from Swiss fintech firm DFX.swiss, the Cardano Foundation said.

The system will process transactions in real time and allow payments directly from ADA wallets without routing through a centralised exchange. 

Open Crypto Pay also enables merchants to settle transactions more efficiently and reduce processing fees by roughly two-thirds compared with traditional card payments, according to the announcement.

For everyday retail use cases, such a system could present a compelling example of how blockchain-based payments may function in real-world environments.

However, ADA, the network’s native token, barely moved on the news and has since slipped lower, trading well below the intraday high near $0.28. 

The token also remains more than 90% below its all time high recorded four years ago and about 42% lower than its December high of $0.47.

For the recent partnership to have a meaningful impact on the price of ADA, it would need to drive sustained demand across the network.

In theory, more retail transactions using the token could translate into higher on-chain activity that could spur demand for the token. 

Yet such outcomes remain uncertain for now, as everyday crypto payments still represent a small fraction of the broader digital asset economy.

ADA holders are currently concerned about the token’s multi-month downtrend that has persisted since December, even as, throughout the past several months, Cardano has continued to focus on strengthening its foundational utilities.

For instance, the ecosystem has been working on integrating Bitcoin liquidity into its DeFi environment through trustless bridge initiatives designed to bring additional capital onto the network.

Meanwhile, the Cardano community has formally approved a 70 million ADA budget to fund critical integrations, which eventually led to partnerships including the Pyth Oracle network.

Cardano also rolled out its “Vision 2030” strategic plan, which places more emphasis on enterprise-driven growth and institutional adoption.

Following the announcement of the Pyth integration and the successful testing of the Ouroboros Leios scalability upgrade, the price of ADA saw a sharp 24% rebound in late February. 

The rally briefly pushed the token back toward the $0.41 level as traders priced in improved throughput and additional network utility expected from upcoming upgrades.

However, selling by large holders soon checked that upward momentum.

Weakness across the broader crypto market also kept investor confidence in check.

As recently reported by analysts at Invezz, technical indicators are currently not in ADA’s favour, as the token has continued trading below the 50 and 100-day Exponential Moving Averages.

Unless ADA manages to reclaim the resistance near $0.32, which coincides with the descending EMAs and defines the upper boundary of any rebound, the broader bearish structure may remain intact. 

A decisive move above that level could open the door to a more sustainable recovery phase.

The post Cardano partners with Spar: will grocery payments boost ADA? appeared first on Invezz

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