Cardano (ADA) Price Hints at a Bounce: This Signal Says the Bulls Might Not Be Done

Cardano is catching some attention this week as it hangs around a pretty important price level.

Cardano (ADA) is testing a crucial support level this week, which could influence whether the asset continues consolidating or re-enters a directional trend.

As reported by Trend Rider in a recent X post, Cardano price is still holding up inside the “Rider Band” on the weekly chart. This support zone, composed of the mid-range Fib and Rider.Fib, has been pivotal in buffering the asset from further downside.

However, despite the support, the price action has stalled, and the Bollinger Bands are contracting, hinting at a potential shift in volatility.

The analysis also highlights Strategy #2, which is a bounce scenario identified by the Simple indicator and confirmed on the daily timeframe. As long as ADA stays above $0.55, which marks the line where the bullish trend breaks, this setup remains valid.

The analyst adds that the oscillator looks stable now, and money flow, which had been dropping, is starting to flatten out. This suggests that the selling pressure may be softening.

"This is a key level for Cardano. Either we get a bounce here, or the door opens for further liquidation.

The bulls will need to hold this zone to avoid a break of the long-term trend. A clear break of $0.55 could open the door for liquidations down to $0.47.

Volume indicators show that money flows into ADA were rising through Q4 2024 and January. However, this momentum slowed in the following months, aligning with the declining weekly candles.

More recently, the money flow oscillator has stabilized, suggesting that the outflow may be weakening.

This shift does not necessarily guarantee upward momentum, but it does introduce the possibility of a price recovery.

The bounce scenario will depend on price holding the current support zone and broader market behavior, particularly movements in the Nasdaq, which could influence the crypto market.

For traders, the current level presents a potential entry if the signal remains intact and confirmed on lower timeframes.

For longer-term holders, the suggested accumulation zone lies between $0.58 and $0.60, with an exit or reassessment point at $0.55, where the bullish trend from the lows of 2023 breaks.

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The post Cardano (ADA) Price Hints at a Bounce: This Signal Says the Bulls Might Not Be Done appeared first on Trend Rider.