Foreign media analysis suggests that Cardano's token ADA has rebounded after a roughly 20% pullback, but the price remains hovering around the key area of $0.23. Weekly charts show this area remains a repeatedly tested support zone over the past few years, while daily charts continue to reflect persistent short-term selling pressure, with the market awaiting confirmation of its future direction.
The weekly chart still holds long-term support.
From a weekly perspective, ADA is currently hovering between $0.22 and $0.24. The article argues that this area repeatedly provided support in 2023, driving subsequent recovery rallies. The current price return to this level indicates that buying pressure is still attempting to hold the long-term bottom area.
Meanwhile, the Bollinger Bands have narrowed significantly, indicating continued compression of volatility. Similar patterns often appear before major directional moves. The article also mentions that while ADA remains in a larger downward structure, open interest has gradually risen to near cyclical highs, suggesting increasing speculative activity.
- Near-term support level: $0.23
- Key support zone: $0.22 to $0.24
- Key resistance levels: $0.267, $0.335
The daily downtrend has not yet reversed.
The short-term trend is even weaker. The article points out that ADA has been trading within a descending parallel channel for several months, during which it has consistently formed lower highs and lower lows. Recently, the price rebounded towards the upper edge of the channel but was again blocked, subsequently falling back to around $0.23, indicating that buyers have not yet effectively reversed the short-term trend.
From an indicator perspective, the Gaussian Channel still shows a bearish structure, and the price has failed to regain its midline resistance. Meanwhile, the RSI is approaching oversold territory, and the market is watching to see if a bullish divergence will form. However, until the divergence is truly confirmed, short-term momentum remains in favor of sellers.
- Near-term resistance level: $0.255
- Higher resistance levels: $0.272, $0.28 to $0.29
- Break below reference level: $0.22
The future direction depends on which cycle is dominant.
The article argues that ADA's current core dilemma lies in the fact that long-term support remains intact, but the short-term trend has not yet been restored. If the price rebounds to around $0.255 and $0.27, it indicates that buying interest is recovering, and the market may further test the area above $0.30.
Conversely, if the $0.22 support level is breached, the current long-term support logic will be weakened, and the price may face further downward pressure. Until then, ADA remains within a range where long-term support and short-term weakness coexist, and the direction it chooses in the coming weeks will be a key focus for the market.
