Cardano (ADA) is making a tentative recovery after testing the critical support range of $0.52–$0.57, a zone that has historically led to major reversals.
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Market analyst Ali Martinez highlighted that every touch in this area since the end of 2024 has resulted in a sharp upward reaction, indicating strong buyer interest. ADA is now trading around $0.53, with bulls looking to defend this zone to avoid retracements.
The recovery coincides with improving sentiment within the chain and growing accumulation around long-term support. Analysts say that as long as the ADA maintains this base, the path towards $0.72 and $1.15 remains valid. However, a close below $0.52 could bring renewed bearish pressure and delay recovery hopes.
ADA's price trends to the downside on the daily chart. Source: ADAUSD on Tradingview
TD sequential buy signal tips at a cycle bottom
Adding to the optimism, the TD Sequential indicator recently printed a buy signal on the three-day chart of ADA, a pattern known for marking potential market bottoms. Historically, similar developments have preceded strong bullish reversals, indicating that sellers may be losing control.
Trading volume and long/short ratios also support the bullish view. According to Mint glasslong positions now represent 52% of open interest, reflecting traders’ renewed confidence. A break above $0.60 could confirm the reversal and pave the way for a broader rally towards the $0.72 resistance level identified by several analysts.
Can Cardano (ADA) maintain its momentum?
While ADA’s short-term charts show potential for recovery, longer-term indicators remain cautious.
Cardano continues to trade within a descending parallel channel formed since December 2024, with resistance near $0.72. Analyst Valdrin Tahiri noted that unless ADA reclaims the $0.60 zone, the broader trend remains bearish.
In any case, the combination of strong support, bullish confluence signals and improved sentiment among traders paints a cautiously optimistic picture.
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If the recovery continues and momentum strengthens above USD 0.65, ADA could confirm a new accumulation phase, paving the way for a possible medium-term breakout above USD 0.72 and a retest of the psychological level of USD 1.
Cover image of ChatGPT, ADAUSD chart from Tradingview