Cardano (ADA) Shows Bullish Signals Near $0.5766 With 93.8% Positive Sentiment

Cardano (ADA) is currently exhibiting bullish signals as it holds steady near the $0.5766 mark, supported by a critical demand zone and positive RSI divergence. This technical setup suggests a potential reversal in the asset's prolonged downtrend, with analysts targeting breakout levels above $0.80 and potential gains toward $1.35 and beyond. The formation of a bullish RSI divergence, where the Relative Strength Index forms higher lows despite ADA’s price making lower lows, is a classic indicator of weakening bearish momentum and often precedes trend reversals.

Market sentiment around Cardano has improved significantly, with data showing a 30-day high in bullish outlook among investors. Approximately 93.8% of voters express confidence in ADA’s near-term prospects, reflecting growing optimism despite recent price consolidation. This positive sentiment is a crucial factor that could fuel buying pressure during a breakout. Complementing this sentiment, Elliott Wave analysis identifies key upside targets at $1.35, $2.00, and $3.20. The analysis suggests that ADA may be entering a new impulsive wave phase, reinforcing the technical narrative of a potential bullish trend. The recent clearance of the $0.58 resistance and the ongoing test of the $0.6174 zone further support the possibility of a breakout, especially if accompanied by increased trading volume.

Technical analysts emphasize that a decisive breakout above the descending channel’s resistance—currently between $0.80 and $1.00—would confirm the end of Cardano’s extended downtrend. Such a move could attract renewed buying interest and set the stage for sustained upward momentum. Traders monitoring Cardano should pay close attention to the resistance range between $0.80 and $1.00. Breaking above this zone with strong volume would likely confirm a trend reversal and open the door to the higher targets outlined by Elliott Wave projections. Additionally, sustaining support above the $0.60 level will be critical to maintaining bullish momentum.

Risk management remains essential, as failure to break resistance or a drop below the demand zone could prolong the current downtrend. However, the convergence of technical signals and improving sentiment provides a compelling case for cautious optimism among investors and traders alike. Cardano’s current price action, supported by a bullish RSI divergence and a strong demand zone, alongside rising community sentiment and Elliott Wave targets, points toward a potential trend reversal. A confirmed breakout above $0.80 could mark the end of ADA’s long-term downtrend and initiate a new bullish phase targeting $1.35 and beyond. Investors should monitor key resistance levels and volume indicators to gauge the strength of this emerging trend.