Cardano (ADA) Stages Cautious Rebound from Lows, Eyes Key Resistance
Cardano (ADA) Stages Cautious Rebound from Lows, Eyes Key Resistance
Cardano (ADA) is demonstrating a cautious rebound after testing critical support levels between $0.52 and $0.57, a zone historically known for triggering major reversals. Bolstered by improving on-chain sentiment, increasing accumulation, and a TD Sequential buy signal, ADA bulls aim to defend current levels and target resistance at $0.72 and potentially $1.15. Despite these positive short-term signals, longer-term indicators remain cautious, with ADA still trading within a descending channel. A sustained rebound above $0.65 could confirm a new accumulation phase, paving the way for further upside.
Cardano (ADA) Rebounds from Key Support
Cardano (ADA) is currently experiencing a cautious rebound after successfully testing its critical support range between $0.52 and $0.57. This zone has historically proven to be a catalyst for significant price reversals, indicating strong buyer interest, as highlighted by market analyst Ali Martinez. ADA is trading around $0.53, with bulls actively working to maintain this level to prevent further retracements. The present rebound is bolstered by an improving on-chain sentiment and increased accumulation around long-term support zones. Analysts suggest that if ADA can sustain this foundational support, the path towards resistance levels at $0.72 and potentially $1.15 remains viable. However, a decisive close below $0.52 could reintroduce bearish pressure and prolong the recovery timeline.
Bullish Signals Emerge Amidst Market Activity
Adding to the cautious optimism, the TD Sequential indicator recently generated a buy signal on ADA’s three-day chart, a pattern frequently associated with potential market bottoms and preceding strong bullish reversals. This suggests a weakening grip of sellers. Further supporting this bullish outlook are recent trends in trading volume and long/short ratios. Data from Coinglass indicates that long positions now constitute 52% of the open interest, reflecting renewed confidence among traders. A confirmed breakout above the $0.60 mark is anticipated to solidify this reversal, potentially leading to a broader rally towards the $0.72 resistance level identified by multiple analysts.
Navigating Momentum with Caution
While Cardano's short-term charts signal recovery potential, longer-term indicators advise caution. ADA continues to trade within a descending parallel channel that has been in place since December 2024, with significant resistance near the $0.72 mark. Analyst Valdrin Tahiri emphasizes that until ADA firmly reclaims the $0.60 zone, the overarching trend remains bearish. Nevertheless, the convergence of robust support, multiple bullish confluence signals, and an uptick in trader sentiment collectively paint a cautiously optimistic scenario for Cardano. Should the current rebound hold and momentum strengthen past $0.65, ADA could officially enter a new accumulation phase, potentially paving the way for a mid-term breakout above $0.72 and a retest of the psychological $1 level.