thecryptobasic.com 
Optimism that Cardano could still make a notable price turnaround in the near term persists despite a prolonged period of price consolidation.
Cardano is up nearly 3% since the start of today, a good start to the week after an 8.8% correction in the previous week. Despite this, $ADA has recently trended lower towards price levels last seen on February 6, placing the asset near a major support region that previously triggered a recovery move.
Key Points
- Optimism that Cardano could still make a notable price turnaround in the near term persists despite a prolonged period of price consolidation.
- Analysis buttresses the rare opportunity presented by the current price level, suggesting it is the best time to gain exposure to $ADA.
- Cardano spent months moving within a descending channel, with each rally capped by a falling resistance line.
- $ADA broke through the channel’s upper boundary after its 14.4% rally past $0.31 on February 25 and is now attempting to hold above it.
- If this structure holds, a possible move toward higher resistance zones over the coming weeks is a viable price action.
Cardano Is Bearish, but There’s a Catch
The broader market environment remains cautious, and Cardano continues to show signs of price weakness. Amid this, the current price structure for $ADA is beginning to draw attention for a different reason.
Market analyst MasterAnanda highlighted in a TradingView analysis that an unexpected turn of events can happen for Cardano. With the coin attempting to find stability above a long-standing descending trend structure, the market commentator noted that “everything can change in a flash.”
The analysis buttresses the rare opportunity presented by the current price level. Suggesting that the current bearish trend would not last forever, he claimed that the next week or the coming weeks would either provide better entry points or reward those who bought the current dip.
Whichever way it is, he insisted that “bears are dead,” and there is nothing bearish about the current $ADA chart. Notably, an accompanying chart highlights an even better technical context for a price rebound.
Cardano Stays Above the Descending Channel
The chart shows that Cardano spent months moving within a descending channel, with each rally capped by a falling resistance line. The coin entered this zone after reaching a high of $0.69 on October 27 and has since formed lower highs and lower lows within this wedge.
However, recent price action has started to shift. $ADA broke through the channel’s upper boundary after its 14.4% rally past $0.31 on February 25 and is now attempting to hold above it. Instead of continuing the pattern of lower highs, the chart now shows price stabilizing near the previous resistance area.
In technical analysis, former resistance can become support after a breakout. If the market continues to hold above this level, a rebound to higher prices remains a viable price action.
$ADA Rebound? Support Zone Holds Strong
The price level around $0.24 and $0.25 is therefore becoming a critical support zone. Not only is it a strong support level, but it also aligns with the breakout area above the descending channel, creating a stronger technical foundation for potential recovery.
If this structure holds, the chart indicates a possible move toward higher resistance zones over the coming weeks. The projection shown in the chart highlights an initial target area around $0.64, which corresponds with the 0.382 Fibonacci level.
Meanwhile, the next major level appears closer to the 0.618 Fibonacci level at $0.90. $ADA would have to increase by 248% from its current price of $0.258 to reach the resistance area.
