Cardano Eyes Bullish Reversal After 9% Drop, Says Analyst
Cardano (ADA) could be gearing up for a fresh upside push, according to a new analysis from TradingView user MyCryptoParadise. After a week-long correction that shaved nearly 10% off its value, technical signals now suggest ADA may be building toward a trend reversal.
Price Correction Triggers Potential Setup
Between June 10 and June 17, ADA tumbled from $0.73 to a low near $0.60, marking a 9.6% pullback. Despite the downturn, price action around the $0.63 level hints at stabilization. As of Tuesday, ADA trades around $0.6328.
On the 4-hour ADA/USDT chart, analysts have identified an internal change of character (I-CHoCH) — a potential signal that bearish momentum is fading. This structural pivot followed a liquidity sweep near the $0.6200 mark, where sell-side pressure cleared weaker positions from the market.
Technical Indicators Support a Bounce
Bullish divergence on the MACD further strengthens the reversal case. While price action recorded lower lows, the MACD histogram and signal line moved higher — a classic sign that sellers are losing steam.
The $0.63–$0.64 zone, previously a resistance area, now acts as a key support. Cardano rebounded from a June 14 low of $0.61 to reclaim the $0.65 level, suggesting a successful flip of resistance into support.
Strategy: Eyes on Support, Targeting $0.70
The analyst advises two entry strategies. Aggressive traders might consider current levels for a position, while more cautious participants could wait for a retracement into the $0.63–$0.64 range. A confirmed bounce there would improve risk-reward conditions.
If momentum continues, ADA may challenge resistance at $0.67 and possibly extend to $0.70 — a 10.6% upside from current levels.
Still, the setup hinges on holding above $0.6200. A close below that threshold would nullify the bullish structure, prompting a reassessment of market direction.
Kosta Gushterov
Reporter at Coindoo
Kosta joined the team in 2021 and quickly established himself with his thirst for knowledge, incredible dedication, and analytical thinking. He not only covers a wide range of current topics, but also writes excellent reviews, PR articles, and educational materials. His articles are also quoted by other news agencies.
