- Cardano trades near $0.577, testing vital $0.50 support that could trigger a recovery toward $0.70 resistance.
- The chart suggests a potential double-bottom setup forming as ADA consolidates after prolonged downside pressure.
- Traders await a confirmed breakout above $0.60 to validate momentum and signal renewed bullish control.
Cardano (ADA) is approaching a critical inflection point as market data shows a crucial support zone forming near $0.50. According to analyst Ali, ADA must maintain this level to keep the recovery path open for a rebound toward $0.70. The daily chart illustrates a descending structure nearing exhaustion, with potential for a technical bounce if buyers defend the current range.
The chart shared on November 11 highlights two main horizontal zones—$0.50 as the key support and $0.70 as the immediate resistance target. Historically, this range has acted as a demand and supply channel during previous price cycles. The asset currently trades near $0.577, roughly 2.6% lower on the day, emphasizing the proximity to this pivotal threshold.
Ali’s analysis indicates that holding above $0.50 could stabilize ADA’s short-term trajectory and invite fresh accumulation. If this threshold breaks, however, the chart implies a possible retest of lower zones that could delay any near-term recovery.
Price Structure Hints at Consolidation Phase
The visual pattern on the chart reveals ADA forming a potential double-bottom structure around the $0.50 zone. This formation typically precedes bullish reversals if accompanied by a surge in trading volume and sustained momentum. A clean rebound from this level could propel ADA toward $0.70, a region where previous upswings faced resistance.
From a structural standpoint, Cardano’s price appears to be consolidating within a broader mid-range channel established earlier in 2024. The dotted projection line suggests a possible oscillation between support and resistance before any decisive breakout occurs. Such patterns often define periods of market uncertainty where traders accumulate positions at discounted valuations.
Technical traders interpret the current setup as a make-or-break moment for ADA. Sustained closes below $0.50 could invalidate bullish projections, while rebounds above $0.60 would strengthen the recovery thesis and signal renewed investor confidence.
Traders Watch for Confirmation of Momentum Shift
Market participants are closely monitoring whether ADA can confirm strength through higher lows and expanding volume. The next decisive move hinges on buyer activity near the support region, which will determine if momentum shifts toward recovery. The resistance cluster near $0.70 remains a crucial benchmark that could either cap the rally or unlock higher retracement targets if breached.
This technical configuration mirrors prior accumulation patterns that preceded ADA’s major rallies in early 2023 and mid-2024. Each rebound followed an extended downtrend phase marked by low sentiment and declining volume—conditions resembling the present setup.
The market now faces one critical question: Can Cardano sustain the $0.50 level long enough to ignite a reversal toward $0.70?
