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.
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.
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.
The post Cardano (ADA) Price Setup Signals Reversal Toward $1.60 Despite Current Pressure appeared first on CryptoPotato.
