Cardano (ADA) surprises the market with a sudden 10% pump, trying to break free from a persistent downtrend. After erasing all gains from 2024, investors are now watching charts to gauge if this move signals a sustainable recovery.
Before this recent surge, the technical situation for Cardano was particularly concerning. ADA spent much of the year fighting against intense selling pressure, ultimately erasing all the gains recorded in early 2024. This massive retracement plunged many holders into uncertainty, testing the resilience of the community.
The market seemed to validate a long-term bearish scenario, with the price sliding dangerously below key support zones. This apparent capitulation from buyers gave way to a phase of doubt, where the fear of a deeper plunge toward new annual lows dominated overall sentiment.
However, the crypto market abhors a vacuum and ADA reacted with vigor. This 10% rally comes at a critical moment, acting as a breath of fresh air for the bulls. Technically, this move could signal an attempt to form a local bottom, often a precursor to an accumulation phase.
To validate this scenario and avoid the “Dead Cat Bounce” trap, Cardano must imperatively transform its former resistance levels into support zones.
With an obvious bullish divergence in higher timeframes, ADA appears ready to confront its crucial resistance zone between $0.38 and $0.408. Despite this, consolidation below this zone for several days or weeks remains possible.
This is therefore an ideal moment to DCA into ADA. However, the long-term trend remains uncertain and taking profits when Bitcoin approaches $96,000 to $98,000 is the best option for now. In this context, ADA could reach between $0.52 and $0.60, representing a gain of over 40%.
The central question now animating debates is the longevity of this movement. If Cardano’s history has taught us anything, it’s that its cycles are often long and methodical. The projection through 2026 suggests we could be at the dawn of a broader bull cycle, aligned with network fundamentals and technological upgrades (hard forks).
To hope for a return toward its ATH by 2026, Cardano will not only need to follow Bitcoin’s overall momentum but also prove its utility against increasingly aggressive competitors. On-chain indicators show sustained development activity, a factor often correlated with long-term price appreciation.
While this 10% jump is a positive signal, caution remains warranted. The crypto market remains volatile and ADA hasn’t yet exited the danger zone. Traders will need to monitor the weekly close: a confirmation above key levels could validate the beginning of a genuine secular bull run. Conversely, a brutal rejection would send the asset back on the ropes, prolonging the consolidation phase.
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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