Key Insights
- •Cardano price prediction shows a 21% bounce potential if the price reclaims $0.50.
- •Big holders added $77 million ADA, hinting at early recovery strength.
- •A drop under $0.38 keeps the risk of $0.27 still open.
Cardano price prediction has started to look a bit better this week. ADA price trades near $0.41, after falling for weeks.
The chart now shows a small early signal that a short recovery may start soon. However, the move only works if Cardano price stays above key support and the market does not weaken again.
The network also faced a mainnet issue recently, which adds more noise for traders. The signs together show that ADA is trying to build a base, but the next few levels will decide everything.
Why Cardano Price Prediction Shows a Possible Bounce?
The first signal behind the bullish Cardano price prediction comes from the RSI (Relative Strength Index). It is a tool that measures if a coin is overbought or oversold.
Between October 10 and November 22, the ADA price formed a higher low, while the RSI formed a lower low.
This pattern is called a hidden bullish divergence. It usually indicates that selling pressure is slowing down, and a short-term bounce can begin.
The chart supports this idea. ADA price traded close to $0.41, which is just above a support area where buyers stepped in earlier.
If Cardano price moves above $0.50, the recovery becomes stronger. A clean move above $0.50 opens a path toward $0.62, $0.69, and even $0.89 if the broader crypto market improves.
These levels are derived from simple Fibonacci retracement lines, which many traders use to identify support and resistance zones.
However, the risk still exists. If Cardano price falls under $0.38, the chart starts pointing toward $0.27.
This zone is where many long-term ADA traders expect a deeper bottom.
Big ADA Holders Are Back to Buying
On-chain data shows that big holders bought more ADA this week. The largest group of wallets increased their Cardano holdings from 1.59 billion to 1.78 billion ADA in one aggressive pickup.
At the current Cardano price of $0.41, this equals approximately $77 million worth of ADA added in a short time. When large holders buy after a long downtrend, it normally suggests they believe the price is close to a strong support level.
Despite this, sentiment around ADA remains mixed. Some analysts suggest ADA currently has the most negative sentiment among major networks.
This sentiment stems from a few recent issues on the network. One incident involved a small mainnet issue where Cardano experienced a temporary chain split due to a rare edge-case bug.
Although the network did not go down, many users misinterpreted the event and assumed something more serious had occurred. The team explained the issue and resolved it quickly, but the fear added pressure to the price.
Another point of concern arose when a whale lost $6.05 million on a trade due to low available liquidity on a decentralized exchange. This highlighted a liquidity gap in some parts of the Cardano network, which also affected short-term sentiment.
Nevertheless, some analysts remain confident, continuing to track the bullish Cardano price prediction. One trader pointed out that ADA price recently retested the same zone that initiated its last major rally.
Another chart shared online indicated that ADA has strong long-term potential as it remains significantly below its all-time high. ADA price currently sits at approximately 22% of its all-time high, offering substantial room for growth if the next market cycle strengthens.
However, everything now hinges on the $0.50 level. This is the most critical level on the chart.
Without breaking this line, the recovery remains weak. With a clear break above it, the Cardano price prediction points to a 21% rebound and a move towards higher targets.
The RSI signal and whale buying activity support this outlook, but the market needs to remain stable for a potential surge in ADA price.