The Cardano RSI reset and falling wedge pattern point to a potential bullish reversal, echoing conditions that fueled its July rally.
In a post on X, crypto market analyst The DApp Analyst observed that ADA may be setting up for a potential rebound after its daily Relative Strength Index (RSI) observed a pattern last seen in July, when the token climbed 97% in just 54 days.
Aside from the RSI, the analyst mentioned that ADA’s chart is forming a falling wedge pattern, a setup that could soon break upward if momentum strengthens. Notably, ADA trades at $0.5665, a 1% increase in the past day, which has expanded its weekly gain to 4.2%. Despite this recent uptick, ADA has seen a 21% drop in the past month.
Technical Indicators Signal Possible Reversal
The DApp Analyst believes this downtrend could exhaust soon, citing the RSI pattern. Data from his accompanying chart shows that from March, ADA faced alternating rallies and declines within a broader downtrend.
During this period, it faced sideways movement in April, but momentum weakened in May, leading to a decline into June, where a swing low set the stage for a July rally, surging 97% to around $0.57. Interestingly, the July rally began after Cardano’s daily RSI reset below the 40 mark, contributing to the push.
However, after this run, the profit-taking that began in August triggered a renewed downtrend through September, with October forming a falling wedge.
The analyst explained that ADA’s RSI has now witnessed another retest below 40, which previously marked the start of its July breakout to $0.57. This suggests that bearish momentum is fading and that buyers could be regaining control.
Additionally, the falling wedge formation indicates waning selling pressure. The upper boundary of this structure sits around $0.67–$0.70, while support lies between $0.47–$0.50.
A decisive move above the wedge could open the door to targets between $0.75 and $0.85, a 32% to 50% from the current level. However, a breakdown below $0.47 could redirect focus toward the $0.33 support zone. Meanwhile, if ADA saw a similar 97% rise as a result of the RSI reset, its price could rise to $1.1.
Other Analysts Predict Next Cardano Moves
Notably, Analyst Ali Martinez also highlighted $0.50 as a key support for Cardano, noting that holding this level is crucial for a potential rebound. If ADA sustains this support, it could regain bullish momentum and aim for the $0.70 resistance, a one-month high.
Reaching $0.70 would require a roughly 23.4% gain from the current price, though ongoing resistance and liquidation events are testing Cardano bulls.
Extending the bullish projection beyond $0.70, Crypto analyst Mintern shared a chart predicting Cardano’s rise from $0.77 to as high as $4–$5. Mintern’s post exuded confidence, rallying Cardano supporters and fueling optimism that ADA could reclaim and surpass its previous all-time high in 2025.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
