Cardano ADA: Power of Three Setup Hints at Potential Rally to $3
Amid broader market weakness, Cardano (ADA) is showing signs of a potential bullish reversal, with analysts pointing to a technical formation known as the Power of Three (PO3) as a catalyst for a rebound toward the $3 level. Currently trading at depressed levels, ADA remains 85% below its 2021 all-time high of $3.10, presenting a compelling opportunity for investors. This article delves into the technical and market factors that could drive Cardano's resurgence in the coming months.
Cardano's Power of Three Setup Could Catalyze Rally to $3, Analyst Suggests
Cardano shows signs of a potential bullish reversal despite broader market weakness. A technical formation known as the Power of Three (PO3) suggests ADA could rebound toward the $3 level, according to chart analysts.
The eighth-largest cryptocurrency by market capitalization currently trades at depressed levels alongside major peers. Its native token ADA remains 85% below its 2021 all-time high of $3.10, presenting what bulls consider an attractive risk-reward proposition.
Cardano (ADA) Tests Critical Support Zone After Hitting 12-Month Low
Cardano's native token ADA plunged to $0.56, marking its lowest price point in nearly a year. The 6% daily decline positions the cryptocurrency at a crucial technical juncture, testing a historic demand zone between $0.50-$0.55 that has repeatedly sparked reversals.
Trading volumes surged to $1.7 billion as the asset broke below its 200-day moving average. Market participants are closely watching whether this golden pocket support - defended six times previously - will hold again. The last similar technical setup preceded ADA's major 2023 rally.
Technical analysts note the token must reclaim $0.60 to shift short-term momentum. Current price action shows consistent lower highs since October, with resistance forming at multiple levels above the current $0.57 trading range.
Cardano Price Recovery Expected Amid Midnight Launch and Analyst Optimism
Cardano's recent price decline to $0.4920—a multi-month low—has sparked concerns among investors, but analysts now see signs of a potential rebound. crypto analyst Ali Martinez highlights a critical support zone where ADA has historically rallied, suggesting a 100% surge to $1.15 could be imminent.
The upcoming launch of Midnight, a zero-knowledge sidechain developed by cardano founder Charles Hoskinson, is poised to address scalability challenges. With over 80 partnerships secured for the project, Midnight could catalyze renewed institutional interest and network value.
Market sentiment appears to be shifting as Cardano tests key technical levels. The broader crypto market correction that dragged ADA lower now shows early indications of reversal, with Hoskinson's strategic bets on privacy-focused infrastructure positioning the ecosystem for long-term growth.
Cardano (ADA) Shows Signs of Recovery After Prolonged Downturn
Cardano's native token ADA has rebounded from the critical $0.50 support level, signaling potential exhaustion of the recent bearish trend. The cryptocurrency now trades between $0.52-$0.55 with notable buying interest emerging after weeks of decline.
Technical indicators suggest oversold conditions, with the daily RSI hovering NEAR 30. This comes alongside significant ecosystem developments including Midnight Protocol's milestone of 1 million mining addresses and the new x402 transaction standard enabling AI-powered crypto transactions.
The $0.50-$0.52 zone has proven resilient throughout 2025, with strong absorption of selling pressure evident in wick rejections. Analysts observe a descending channel pattern that may be forming a bottom, though sustained recovery requires conquering the $0.56-$0.58 resistance band.
