Ethereum News Today: Bullish Bounce as Bearish Sentiment Fuels ADA Accumulation Bets

Cardano’s ADA has recently exhibited a striking divergence between market sentiment and price action. Despite a significant drop in community optimism—reaching a five-month low according to Santiment—the altcoin has defied expectations by gaining 5% since late August. This trend aligns with historical patterns where negative retail sentiment often precedes accumulation by larger investors, who view bearish retail behavior as a buying opportunity [2].

The bearish sentiment was exacerbated by a three-week price decline that started on August 14, but this was followed by a consolidation phase within a narrow range, with ADA testing a key demand zone between $0.81 and $0.83. On-chain data suggests that buyers are defending this zone, indicating a potential base for a rebound. The current price of $0.8177 places ADA near the lower Bollinger Band, a technical indicator suggesting oversold conditions and the possibility of a near-term bounce [3].

Despite the bearish mood, ADA remains in a favorable technical position. The coin is currently trading within a descending channel formed since August 13, and a breakout above the 20-day EMA near $0.84 could signal a stronger bullish trajectory. Analysts have identified key resistance levels at $0.84, $0.96, and $1.02, with a successful breakout potentially signaling renewed buying interest. However, a rejection at this level may see ADA retest the channel’s support line, increasing the risk of a further decline to $0.68 [2].

The divergence between sentiment and price is not unprecedented in the cryptocurrency market. According to Quantum Ascend, ADA is at a critical decision zone near $0.82, with Fibonacci retracement levels indicating key support and resistance levels. While the RSI is near neutral territory, a move above 50 could indicate renewed bullish momentum. Additionally, the MACD histogram is flattening, suggesting a slowdown in bearish momentum. A bullish crossover in the MACD would reinforce the potential for a price recovery, with many traders targeting $1 as a potential level of significance [3].

The recent Cardano audit, released on September 3, has further reinforced the project’s legitimacy in the eyes of investors. Conducted by Input Output Global (IOG), McDermott, Will & Schulte, and BDO, the 128-page report found no evidence of financial misconduct related to the ADA voucher program. The audit confirmed that 99.7% of tokens sold under the voucher program had been successfully redeemed, effectively debunking claims of misappropriation that had plagued the network since May 2025 [1]. This development, coupled with the ongoing technical strength of ADA, suggests that the asset is still viewed as an attractive long-term investment by a segment of the market [4].

While Cardano faces stiff competition from Ethereum and emerging projects like MAGACOIN FINANCE, its affordability and research-driven development model continue to attract both retail and institutional interest. With a price of $0.8263, ADA remains significantly undervalued compared to its peers, offering a higher percentage-based upside potential if momentum continues. As the market approaches the final quarter of 2025, the race to reach $5 or even $5,000 remains a focal point for investors, with ADA positioned as a compelling long-term play [4].

Source:

[1] Cardano audit confirms 99.7% of voucher ADA redeemed... (https://cryptobriefing.com/cardano-voucher-audit-results/)

[2] Cardano Sentiment Turns Bearish but ADA Still Attractive for... (https://finance.yahoo.com/news/cardano-sentiment-turns-bearish-ada-092540539.html)

[3] Cardano Retail Sentiment Hits Five-Month Low Amid Price... (https://holder.io/news/cardano-retail-sentiment-low-price-defense/)

[4] Cardano vs Ethereum — Which Altcoin Reaches $5 First in... (https://coindoo.com/ethereum-eth-or-cardano-ada-which-altcoin-breaks-5-or-5000-first-and-triggers-the-next-fomo-wave-in-2025/)