Cardano (ADA) Displays Bullish Divergence, Analyst Sights Potential Upside

Cardano (ADA) flashed its first meaningful technical rebound signal in weeks, with on-chain analyst Ali Martinez reporting a bullish divergence between ADA’s price and the daily RSI.

According to Martinez, the TD Sequential indicator has also printed a buy signal, historically one of ADA’s more reliable reversal triggers, suggesting that a relief bounce is coming if momentum holds.

The setup aligns with what other market watchers are flagging. Analyst Crypto Patel noted that ADA has just retested the same structural level that preceded its last parabolic rally.

This move escalated by more than 3,000% when it broke in the previous cycle. Patel argues the pattern is intact as long as the price stays above $0.35, with a clean invalidation below that range.

However, ADA has dropped by 47% over the past 60 days, even as fundamentals remain strong. Cardano still processes over 3.1 million daily transactions, and its Hydra scaling updates continue rolling out.

Traders now view the $0.40 support as the line separating a standard correction from a deeper breakdown. Meanwhile, approval odds for a potential ADA ETF sit at just 34%, keeping regulatory momentum uncertain.

Cardano’s near-term trajectory hinges on a series of competing forces. The launch of Midnight, its privacy-focused sidechain, is projected to expand the network’s reach, but the introduction of the separate NIGHT token risks diverting developer attention and liquidity from ADA.

Altcoin market structure may offer a broader clue. Michaël van de Poppe highlighted a bullish MACD divergence across the entire altcoin index, including the first green histogram bar in four years. The analyst compared this setup to the early-cycle recovery in 2019.

Moreover, Peter Thocc, founder of The House Of Crypto, noted that the altcoin-BTC ratio is once again bouncing off long-term support, a level that has preceded every major altseason over the past eight years.

As ADA fights to hold the $0.40 zone, the market is watching whether bullish divergences across both ADA and the altcoin sector can overpower whale-driven sell pressure and restore upside momentum.