Cardano’s price shows bullish signs as ADA targets $0.50–$0.60 with key support.
Cardano’s price has recently dropped significantly, landing in a critical support area. This decline has led to a close examination by investors who are eager to see if the price stabilizes or if it continues to fall. Despite the substantial selling pressure seen in recent weeks, the price of Cardano is now starting to find support in a familiar zone, indicating a possible slowdown in the downward trend. Traders are closely monitoring this region to see if it will provoke a response from the market, especially as momentum indicators are showing signs of exhaustion and cooling down.
The price of ADA has been struggling after a sharp decline lasting several weeks, causing it to fall deeply into oversold territory. Chart analysis suggests that ADA has not yet shown the key strength signal typically seen in previous reversals, indicating that the market may still be susceptible to further downward pressure. Traders are advised to exercise patience as the market structure has not yet shown signs of a turnaround, and entering leveraged long positions prematurely could lead to increased volatility.
On the weekly chart, Cardano’s price has broken down from a three-year bear flag pattern that has been in place since 2021. The breach of this pattern is significant as the lower channel boundary had previously acted as a strong support level multiple times. The price is currently trading below the Exponential Moving Averages (EMAs), with momentum indicators leaning towards a bearish outlook. The weekly support levels at $0.34 and $0.29–$0.30 are now back in focus, indicating a continued downward trend unless ADA manages to hold its ground around the current price zone.
Despite the bearish undertones, there are some signs of a potential relief bounce for ADA holders. A bullish divergence is forming on the 12-hour timeframe, as indicated by the RSI and momentum oscillators. While this divergence does not negate the overall downtrend, it suggests a short-term exhaustion in selling pressure, hinting at a possible price rebound. If this divergence materializes, ADA could potentially reach the $0.50 to $0.60 range, although confirmation is needed through sustained price action.
There is also a more optimistic view suggesting that Cardano’s price may have already hit its lowest point with a possible capitulation wick marking the end of the downward trend. This scenario, supported by historical patterns, indicates a potential stabilization and gradual recovery for ADA. Overall, the market for ADA remains uncertain, with conflicting signals pointing to both bullish and bearish scenarios. Traders and investors are advised to stay cautious and vigilant as the market continues to navigate through these uncertain times.
