- Cardano (ADA) may be setting up for a bullish reversal after a recent 9.6% decline, with key technical signals like MACD divergence and a structural shift supporting the case.
- Analysts caution that holding the $0.63–$0.64 support zone is crucial, while a move above $0.67 could open the door to further gains.
Cardano (ADA) may be on the verge of a significant price move, according to a fresh analysis from TradingView contributor MyCryptoParadise. Despite a recent downturn that saw the asset shed nearly 10% in a week, technical indicators now hint at a possible bullish reversal.
From June 10 to June 17, ADA fell from $0.73 to a weekly low of approximately $0.60, marking a 9.6% correction. However, the token has since rebounded modestly and is currently trading around $0.6328.
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A critical signal highlighted in the analysis is the appearance of an internal change of character (I-CHoCH) on the 4-hour ADA/USDT chart. This pattern typically signals a transition from bearish to bullish momentum. The shift followed a sell-side liquidity sweep near the $0.6200 level—an event that often clears weaker positions and sets the stage for a price reversal.
Adding to the bullish argument is a notable MACD divergence. While cardano printed a lower low, both the MACD histogram and signal lines showed higher lows, pointing to declining bearish pressure.
The analyst also identified a key support zone between $0.63 and $0.64. Previously a resistance level—especially around $0.6421—this range now appears to be acting as support after ADA rebounded from $0.61 to $0.65 in mid-June.
For traders, the strategy varies by risk tolerance. Aggressive participants may consider entering at current levels, though caution is advised due to a less favorable risk-reward ratio. More conservative traders are urged to wait for a confirmed bounce off the $0.63–$0.64 support zone. A move above $0.67 could clear the way toward $0.70, representing an estimated 10% upside.
However, the bullish setup could unravel if ADA closes below the $0.6200 mark, prompting traders to reassess the market structure.
Derivatives data supports cautious optimism. Trading volume surged 45.36% to $1.26 billion, and platforms like Binance and OKX reflected a strong long bias in open positions. Positive funding rates also suggest confidence among leveraged traders. Still, a sharp drop in options volume hints at lower institutional activity and dampened short-term volatility.
While risks remain, the technical and derivatives landscape suggests ADA may be warming up for its next directional move.