Cardano Bulls Awaken: $0.57 Holds Firm as Bullish Divergence Hints at Major Rally

Cardano's price action just flashed its most compelling buy signal in months—while traditional finance keeps chasing 2% bond yields.

Seller exhaustion above $0.57 combined with bullish divergence suggests ADA's consolidation phase may be ending. The charts now whisper what degens already know: risk assets are back in play.

Technical traders are circling as the 4-hour RSI divergence confirms weakening downward momentum. Meanwhile, Bitcoin's sideways action leaves altcoin hunters hungry for the next big mover.

Will this be the breakout that finally justifies those 'Ethereum killer' T-shirts? The market's about to vote with its wallet—as usual, the most cynical bets will probably cash out first.

Cardano Breaking Out Of Descending Triangle

One setback that has plagued the Cardano price over the last few months is the fact that following the sell-offs, the altcoin found itself inside a descending triangle. This descending triangle has now persisted for months as the cryptocurrency continues to trade within it, according to crypto analyst melikatrader94 on the TradingView website.

The analysis focuses on the Cardano price being unable to break out of this big descending triangle over the last few months, leading to its suppressed price action. The analyst even pointed out the March rally, but explained that this was a breakout that eventually failed. This meant that Cardano continued to trade inside this bearish descending triangle.

Fast forward to the present, though, and things seem to be looking up for the altcoin. The analyst pointed out that it is now showing some bullish divergence on the chart, which is usually evidence that sellers are running out of steam and buyers are starting to catch up. As a result, the support has been mounting above $0.57, and bulls have held quite strong.

Now, if this support continues to hold, the crypto analyst predicts that the cardano price could see another leg-up. The initial targets remain conservative at $0.67-$0.70. Nevertheless, hitting these targets would mean that the bulls are starting to take back control of the price.

The Bearish Thesis For ADA

Just as there is a bullish scenario for the Cardano price, there is also the possibility that it doesn’t go as expected. There is an invalidation level for this forecast, and that lies at the $0.53 support. This level has already proven to be a strong support point for Cardano. Thus, losing it to the bears would trigger further price crashes.

Melikatrader explains that if this $0.53 level fails, then the entire setup is actually off the table. It WOULD mean a continuation of trading inside the descending triangle, with much lower targets as the triangle continues to widen in the absence of a breakout.