Cardano (ADA) is seeing a cautious rebound after testing the critical support range of $0.52 to $0.57, an area that has historically sparked major reversals.
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Market analyst Ali Martinez He stressed that every touch to this area since late 2024 has resulted in a sharp bullish reaction, indicating strong interest from buyers. ADA is now trading near $0.53, as the bulls aim to defend this area to avoid corrections.
The recovery coincides with improving on-chain sentiment and growing accumulation around long-term support. Analysts say that as long as ADA maintains this rule, the path towards $0.72 and $1.15 remains valid. However, a close below $0.52 may re-emerge bearish pressure and delay recovery hopes.
ADA's price trends to the downside on the daily chart. Source: ADAUSD on Tradingview
TD cascade buy signal hints at the bottom of the cycle
Adding to the optimism, the TD Sequential Index recently printed a buy signal on the ADA’s three-day chart, a pattern known to indicate potential market bottoms. Historically, similar setups have been preceded by strong bullish reversals, suggesting that sellers may be losing control.
Trading volume and long/short ratios also support the bullish view. according to QuinglassLong positions now represent 52% of open interest, reflecting renewed trader confidence. A break above $0.60 could confirm a reversal, paving the way for a broader rally towards the $0.72 resistance level identified by many analysts.
Can Cardano (ADA) maintain its momentum?
While short-term charts for ADA show potential for recovery, long-term indicators remain cautious.
Cardano continues to trade within a bearish parallel channel formed since December 2024, with resistance near $0.72. Analyst Valdrin Taheri noted that unless ADA reclaims the $0.60 area, the broader trend remains bearish.
Regardless, the combination of strong support, bullish confluence signals, and improving trader sentiment paints a cautiously optimistic picture.
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If the rebound continues and momentum increases above $0.65, ADA may confirm a new accumulation phase, paving the way for a possible mid-term breakout above $0.72 and a retest of the $1 psychological level.
Cover image from ChatGPT and ADAUSD chart from Tradingview
The post Cardano (ADA) Rebounds From Lows, Eyes Key $0.72 Resistance Level first appeared on Investorempires.com.
