Cardano (ADA) Price: Buy Signal Flashes After Months of Downside Pressure - Is the Correction Over?
A long-awaited technical signal just flashed for Cardano's ADA, suggesting the brutal downtrend might finally be breaking.
The Signal in the Noise
After months of relentless selling pressure that tested the resolve of even the most ardent 'HODLers,' a key momentum indicator on ADA's chart has pivoted. This isn't about vague promises of future smart contracts or partnerships—it's a quantifiable shift in market structure. The indicator, having been buried in oversold territory, has now crossed a critical threshold, historically a precursor to bullish reversals.
Context is Everything
This potential reversal attempt comes against a backdrop of a broader crypto market searching for direction. While other major assets have seen volatile, range-bound action, ADA's price action has been a masterclass in sustained depreciation—until now. The signal suggests the momentum of the sell-off is exhausting itself, potentially setting the stage for a mean reversion trade that traditional finance quants would recognize in a heartbeat (though they'd probably still call it a 'pet rock').
What Comes Next?
A buy signal is a trigger, not a guarantee. It indicates the conditions for a rally are aligning, but it doesn't bypass the need for confirmation. Watch for ADA to hold above recent swing lows and, crucially, to start carving out a series of higher highs on increased volume. The market's next move will separate a dead-cat bounce from a genuine trend change.
The flashing signal offers the first credible argument in months that the downside pressure on Cardano could be ending. Now, the price action needs to prove it.
TLDR
- Cardano (ADA) has received a TD Sequential buy signal on the weekly chart after months of downside that pushed price from above $0.90 to the $0.37–$0.41 range.
- The $0.37 level is critical support that aligns with Fibonacci zones and must hold for the bullish setup to remain valid.
- If ADA holds above $0.37, analysts project a potential recovery toward $0.54, which matches the 0.618 Fibonacci retracement level.
- Cardano is currently testing a multi-year ascending trendline that has historically marked transitions between corrections and recovery phases.
- ADA is trading inside a falling channel, and a breakout above the upper boundary could open a path toward the $0.60–$0.68 resistance zone.
Cardano is drawing attention from traders after analyst Ali Martinez identified a TD Sequential buy signal on the weekly chart. The signal comes after an extended downtrend that brought ADA from above $0.90 down to the $0.37–$0.41 range.
TD flashed a buy signal on Cardano $ADA.
Now $0.37 must hold to open the path to $0.54. pic.twitter.com/xLThWFUprW
— Ali (@alicharts) December 14, 2025
The TD Sequential indicator is commonly used to identify moments when a trend begins to lose momentum. In this case, the buy signal appeared after a long series of bearish candles, suggesting that selling pressure may be cooling off.
Martinez emphasized that the setup only remains valid if ADA can hold above $0.37. This level aligns with a key Fibonacci support zone and has acted as a floor where buyers have stepped in recently.
Recent price action shows long lower wicks and smaller candle bodies. These patterns typically indicate that demand is beginning to absorb supply at current levels.
ADA is currently trading NEAR $0.41, up 0.17% in the last 24 hours according to Brave New Coin data. The price is attempting to stabilize after weeks of steady downside pressure.
Critical Support and Resistance Levels
The $0.37 level serves as the key line in the SAND for ADA’s current setup. As long as price remains above this support, the bullish scenario stays alive.
$ADA | @Cardano_CF
Cardano Mirroring 2020 Blastoff Moment
Altseason Targets
➤ Conservative: $4.88-$5.50
➤ Primary: $10.40
Here's the 7-Year Count
pic.twitter.com/lBUiJuWwk1
— Quantum Ascend (@quantum_ascend) December 13, 2025
If ADA holds above $0.37, the next target sits around $0.54. This level matches the 0.618 Fibonacci retracement of the larger decline and was an important support area earlier in the year.
A breakdown below $0.37 WOULD invalidate the bullish setup. Such a move would likely push ADA back into the mid-$0.30s, where the next support zone exists.
Analyst Ssebi highlighted that cardano is currently sitting on a multi-year ascending trendline. This diagonal support has historically marked transitions between prolonged corrections and sustained recovery phases.
Ssebi noted that ADA “is holding the multi-year trendline so far.” He stressed that a strong reaction from this level is needed to trigger a meaningful reversal narrative.
Channel Breakout Scenario
Another analyst, Nehal, shared a daily chart showing Cardano trading inside a well-defined falling channel. The chart maps out a potential breakout scenario that could lead to a multi-week recovery move.
$ADA pic.twitter.com/I7Ue9cCTrr
— Nehal (@nehalzzzz1) December 14, 2025
If ADA can break above the upper boundary of the channel, price could rotate back toward the $0.60–$0.68 zone. This area contains prior volume clusters and resistance levels from earlier in the year.
The falling channel has governed price action for several months. A confirmed break would require ADA to maintain current support while building higher lows.
Coin Bureau data shows that Cardano is experiencing volume expansion during consolidation. This pattern often precedes directional moves when combined with strong historical support levels.
Technical Picture Remains Mixed
Despite the buy signal, Cardano remains in a technical downtrend. Lower highs and lower lows have not been broken yet, so this is not a confirmed reversal.
Momentum indicators are resetting and volatility has tightened up. These conditions frequently appear near turning points when the market is deciding its next major move.
A confirmed break above $0.45 would strengthen the bullish case and open the door toward higher resistance zones. This would mark the first higher high in the current downtrend structure.
The next few weekly closes will determine whether this buy signal develops into a larger MOVE or fades away. Patience is required as ADA sits at a decision point between continuation and reversal.
