Cardano (ADA) Eyes Reversal: Weekly Chart Signals Upturn

Cardano (ADA), currently ranked among the largest cryptocurrencies by market capitalization, has experienced a prolonged downward trajectory over recent months. The asset’s current position shows a sustained period of selling pressure that began in September, shortly after a brief phase of strength recorded in July and August.

Even though September initially showed signs of continued upward movement, the month closed slightly lower. This was the beginning of a consistent decline that extended through February, with each successive month ending in negative territory. Over these six months, ADA steadily moved lower, losing a significant portion of its value.

From its peak near $0.95 in September, the asset has dropped approximately 71%, at one point revisiting levels close to $0.22, which align with previous cycle lows. This zone attracted buying interest, preventing further downside and establishing a critical support region.

Emergence of a Technical Signal

Recent technical analysis suggests that this prolonged bearish phase may be approaching a turning point. Crypto analyst Ali Martinez highlighted that a TD Sequential indicator has completed a “9” count on the weekly chart. This formation is commonly interpreted as an early indication of trend exhaustion, often preceding a shift in price direction.

The appearance of this signal on a higher timeframe strengthens its relevance, as weekly indicators generally carry more weight than those observed on shorter intervals. According to Martinez, such setups are typically followed by a period of upward price movement, which could occur within the next four weeks, depending on broader market conditions.

Although shorter-term charts may still show uncertainty or weakness, signals from higher timeframes often guide the broader market structure. This suggests that any near-term fluctuations could eventually align with a more constructive outlook if the signal holds.

Conditions for Confirmation 

Despite the emergence of a bullish indicator, confirmation remains dependent on key price levels. For the projected recovery to materialize, ADA must maintain a weekly close above the $0.23 support level. A breakdown below this threshold would invalidate the current setup and weaken the case for a reversal.

At present, Cardano is trading around $0.26, positioning it above this critical level. This supports the possibility that the market may attempt a recovery, provided that buying pressure remains consistent.

If the support level continues to hold, analysts anticipate an initial move toward $0.32, followed by a potential extension to $0.37. These targets represent moderate gains from current levels and would signal a meaningful shift in momentum after months of decline.