Sergey Diakov
Cardano (ADA) is catching the eye of technical traders as it holds ground near an important support zone. The asset may be positioning for a potential trend shift, with chart patterns revealing hidden bullish divergence on higher timeframes — a signal that often appears before upward momentum returns.
Technical Overview: Channel Retest and Divergence Confirmation
Recent analysis by trader Gnojek shows ADA trading around $0.61, retesting the lower boundary of a descending channel marked by clear trendlines. A yellow ascending line below current price action serves as short-term support, suggesting the asset may be back-testing the channel floor after an extended decline.
The Relative Strength Index (RSI) displays hidden bullish divergence — forming higher lows while price makes lower lows. This pattern typically reflects weakening selling pressure and can signal recovery if support holds. Volume data reinforces this view: despite recent downward movement and sharp intraday spikes, selling volume hasn't expanded significantly, suggesting the decline lacks strong conviction.
Immediate resistance sits near $0.70, with Fibonacci targets at $0.92, $1.35, and $1.70. The downside safety net remains around $0.22, marking the long-term technical base.
Market Context: ADA's Position Amid Broader Uncertainty
Cardano has underperformed leading altcoins through recent cycles as investors wait for stronger network activity and ecosystem growth. However, historical patterns show ADA tends to rebound sharply after deep consolidations, especially when RSI divergence aligns with structural support. The broader crypto market remains cautious, with Bitcoin's momentum and liquidity driving sentiment across major assets. If ADA holds stability around this zone, traders may view it as a strategic accumulation range before the next expansion phase.
Support Test Could Define ADA's Next Move
The current setup highlights an important inflection point for Cardano. While confirmation above $0.70 is needed to validate any bullish scenario, technicals suggest momentum may be quietly shifting in ADA's favor. A sustained hold at current levels could establish the foundation for a stronger rebound — potentially making this phase the calm before a larger move in Cardano's next cycle.
Sergey Diakov
