- Cardano is showing bullish divergence above the $0.57 support level, indicating sellers may be losing control.
- If this support holds, ADA could rally toward $0.70, but a drop below $0.53 would invalidate the bullish setup.
After enduring months of relentless selling pressure, Cardano (ADA) is showing signs of recovery, sparking hope among investors. The altcoin, which plummeted more than 50% from its March high above $1, has now found solid footing above the $0.57 level—an area that may signal a shift in market sentiment.
Cardano Sellers Retreat as Support Strengthens
Cardano’s downward spiral led it into a long-standing descending triangle pattern. Despite a brief breakout in March, the price failed to sustain the momentum and was dragged back into the triangle’s bearish zone. However, recent trading patterns suggest that sellers may finally be running out of steam.
According to crypto analyst melikatrader94 on TradingView, the ADA chart is now showing bullish divergence, a classic sign that selling pressure is waning while buying interest is building. This bullish divergence aligns with growing support above $0.57, a critical threshold where bulls are holding their ground.
Breakout or Breakdown?
If ADA can maintain this support, analysts anticipate a potential leg-up, with short-term targets set between $0.67 and $0.70. A move toward these levels would signal a return of bullish strength and a possible breakout from the prolonged descending triangle pattern.
However, the bullish setup isn’t without risk. A break below the $0.53 level—which has acted as a dependable floor in the past—would invalidate the current forecast. In that scenario, ADA could revisit lower lows as the triangle formation continues to widen.
What This Means for Investors
The current standoff between bulls and bears places Cardano at a pivotal moment. If the $0.57 support holds, ADA could rally and reclaim higher ground. But if $0.53 fails, the recovery hopes may be dashed—at least in the short term.
For traders watching ADA closely, the next few sessions could be critical in determining whether Cardano breaks free from its bearish pattern or sinks further into correction territory.
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