- The supertrend indicator paints a potential bullish breakout for Cardano (ADA).
- However, the momentum may not materialize, rendering the buy signal invalid.
- ADA could target highs above $0.40 next, although the $0.25 support remains key.
Cardano price has dropped again as broader selling caps the crypto market bounce. ADA is down 3% in the timeframe and near support levels around $0.26, which mirrors the pullback for Bitcoin.
The cryptocurrency bellwether recently rallied to near $83,000, but has pared gains and currently hovers around $79,800 amid macroeconomic headwinds. Cardano’s price trajectory has aligned with the BTC drop.
However, could ADA be about to pump amid fresh buying interest?
Cardano price: daily chart flashes buy signal
Overall, cryptocurrencies are showing weakness, and ADA remains potentially bearish.
Yet, a key trend indicator is flashing bullish on the daily chart, with the SuperTrend indicator turning green.
Prices have fallen since the indicator flipped red in early February, while long-term declines go back to slip below $1 in September 2025.
The SuperTrend indicator held red for several months and coincided with an eventual 70% decline in ADA price.
When it previously flashed green, ADA price rose sharply, reaching above $0.43 earlier in the year.
Analysts say that while Cardano has struggled since falling below $0.30, the correction and lengthy consolidation could give way to a trend reversal.
If this happens, bulls could target crucial resistance at $0.33 and then year-to-date highs above $0.40. A decisive breakout could bring $0.75-$1.00 into play.
Likely to help the bullish perspective is the fact that Cardano’s key stakeholders have slowly accumulated by buying the dip.
According to Santiment, wallets with at least 1 million ADA tokens have added to their bags to about 67% of supply.
That metric hovers at over 25.09 billion ADA, with buying happening despite the asset shedding more than 70% of its market capitalization over the past 9 months.
Cardano price – short-term bearish outlook!
While the SuperTrend indicator suggests a potential bullish breakout for ADA, skeptics warn that imminent momentum might fizzle, invalidating the buy signal altogether.
Supporting this cautious view are other key oscillators.
The daily Relative Strength Index (RSI) is downsloping near the 50 mark, indicating limited buying pressure, while the Moving Average Convergence Divergence (MACD) shows potential bearish crossover.
Should sellers regain control, ADA could first probe the $0.25 support zone before mounting any meaningful recovery.
However, a deeper breakdown below that level might accelerate losses toward $0.23. The potential demand reload zone aligns with the lower boundary of a multi-month channel.
The broader market outlook, including macroeconomic and geopolitical factors, could influence the next path for this altcoin.
