Cardano's native cryptocurrency, $ADA, has recently retested a significant price level that previously triggered an impressive parabolic rally, raising investors' hopes for a similar pattern to unfold again.
According to CryptoPatel on X (formerly Twitter), the last breach of this level led to a remarkable 3,000% rally, indicating that history could potentially repeat itself for $ADA.
However, CryptoPatel warns that if the price drops below $0.35, this bullish setup would be invalidated, urging caution and independent research.
$ADA is currently facing strong selling pressure, bleeding toward the critical $0.40 level—an area described as a make-or-break zone by Cryptoceek, who emphasizes the urgency for bulls to reclaim $0.50 quickly.
If this support is lost, a further decline to $0.27—the lowest price seen in October—could follow.
On the upside, more robust recoveries are expected only above the 20-day Exponential Moving Average (EMA), targeting $0.64 and $0.74 as next resistance levels.
Bullish Divergence and Buy Signal Suggest Rebound
Technical analyses shared by Ali on X show a bullish divergence on the daily Relative Strength Index (RSI) chart for $ADA, accompanied by a TD Sequential buy signal.
These indicators typically point to momentum weakening on the downside and potential exhaustion of the selling trend, signaling a probable rebound.
Ali's analysis suggests that despite recent dips, buyers might be gearing up to push prices higher.
Manofbitcoin adds to this cautious optimism by noting that while $ADA has met minimal requirements for an upward corrective wave, the current reaction remains weak.
The potential for a downside break below the last swing low could lead to a further drop to around $0.427, highlighting the delicate balance between bulls and bears.
Historical Support and Whale Accumulation Bolster Confidence
Supporting the bullish thesis, recent data tracked by Phemex reveals that $ADA is testing a critical support zone around $0.52, known historically to attract strong buying interest.
The TD Sequential buy signal confirmed here indicates that the current downward momentum might be nearing exhaustion.
Institutional interest remains evident as whale investors reportedly accumulated 348 million ADA tokens in early November, adding a layer of confidence to the market's foundation.
The RSI has been climbing out of oversold territory, paired with potential bullish crossover in the Moving Average Convergence Divergence (MACD) indicator, all aligning with the possibility of an upward shift in market sentiment.
Yet, this positive outlook hinges on $ADA reclaiming resistance levels between $0.58 and $0.60 to establish a sustained bullish trend.