Cardano is rebounding from $0.40 support, with analysts watching for a move toward $1.60 if resistance at $0.51 is cleared.
Cardano (ADA) is showing signs of recovery after an extended decline. The asset is trading near $0.42, with a daily drop of around 4%. Over the past week, though, the price has remained mostly flat.
Market watchers are now focusing on key levels near $0.40, where recent activity suggests buyers are stepping in.
Bounce Begins from Key Support
A recent chart shared by Rose Premium Signals shows ADA rebounding from the lower edge of a descending channel on the 2-day timeframe. This zone, near $0.40, has acted as support before. The current move suggests bulls are defending this level again.
Notably, the setup also features a falling wedge pattern, often linked with potential upside. The chart projects a move toward $0.6 if the trend continues. Further levels mentioned include $0.51, $0.68, $0.95, $1.25, and $1.60. RPS noted,
“ADA looks ready for a strong bounce if support holds.”
For the recovery to gain momentum, ADA must break above nearby resistance. The first key zone is at $0.51. A sustained move past this level could open the path to higher targets. If ADA fails to break out, it could stay in a consolidation range or pull back again. A loss of the $0.40 zone may cancel the current setup.
Cardano (ADA) price chart 05.12. Source: Rose Premium Signals/X
In a separate post, Crypto Yoda shared a 4-hour chart showing ADA moving inside an ascending channel. The trendline has been tested multiple times and continues to hold. The asset is now heading toward a resistance zone around $0.475 to $0.485. Yoda wrote, “Price is now approaching a major resistance zone,” suggesting this level could decide the next move.
Chart Patterns Still Intact
Another analyst, Man of Bitcoin, pointed to a five-wave structure in ADA’s recent price activity. As long as ADA stays above $0.427, the chart supports another upward move. Support for a short-term pullback sits between $0.421 and $0.388.
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As CryptoPotato reported, Ali Martinez recently pointed to buy signals from both the SuperTrend and TD Sequential indicators. However, he also flagged ongoing whale activity. More than 4 million ADA were offloaded in one week in early November, with total monthly sell-offs reaching 440 million ADA by mid-November.
Still, some holders are holding firm. Crypto YouTuber Austin Hilton said he hasn’t sold his ADA and remains committed to the project’s future.
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