Cardano (ADA) retested a demand zone established at $0.2775, a level that indicates a real chance of a price rebound. Accumulation and other indicators suggest that Cardano’s current setup is poised for a near-term rally.
Cardano’s weekly momentum indicators had reached historically oversold levels before the latest pullback, setting the stage for a potential technical rebound. Market reports noted that the weekly RSI approached the 30 threshold, while the MACD began to compress. Simultaneously, the TD Sequential triggered a buy signal on shorter timeframes, which was interpreted as a sign of weakening bearish pressure.
Despite this tactical improvement, the long-term structure remains mixed. ADA continues to trade within a multi-year symmetrical triangle or, according to other interpretations, within a descending channel. These patterns tend to compress the price for extended periods and often precede larger moves, provided they are accompanied by significant volume and sustained buying.
Exchange flows and activity from large wallets showed significant accumulation during the recent correction. Analysts interpreted this behavior as selective accumulation by large players.
Why might Cardano’s price rise?
In the short term, potential rallies toward the $0.50–$0.92 range were mentioned if support holds and the price manages to break out of the descending channel. In the medium term, some projections extended to $1.20–$2.00, while a $4 scenario was described as highly contingent and dependent on near-ideal market conditions and adoption.
Increasing competition among new layer-1 networks, persistent macroeconomic volatility, and regulatory uncertainty continue to limit upside potential. In this regard, the implied probabilities in Polymarket for the approval of a Cardano ETF showed a significant drop in recent reports, reflecting the regulatory sensitivity of potential institutional flows.
The technical confluence around the $0.2775 demand zone defined a clearly conditional trading framework. If this level holds and momentum indicators continue to recover, the price could move into a more sustained rally, capable of attracting additional liquidity and defensive institutional flows. Conversely, a break below that support level would reinforce the longer-term downward trend.
Finally, the network developments mentioned in the coverage—including stablecoin integrations aimed at improving liquidity in DeFi—were presented as fundamental medium-term support factors, rather than immediate price catalysts.
