Cardano (ADA) is showing signs of a possible reversal because its price looks to be causing one of them. At the same time, traders spotted a TD Sequential buy signal and a bullish RSI divergence on the daily price chart. Ali Martinez, a trade technician, argues that these patterns are generally caused by trend fatigue and a likely reversal, like what happened at $0.52 in mid-November 2025. Cardano’s 37% drop from its peak highs indicates that the asset may be approaching a momentum shift.

The technical situation we possess for a Cardano is a subtle but improving situation. The Relative Strength Index is currently near 33-35 with barely below the oversold territory, which indicates that momentum has been weakened, but no levels that would indicate capitulation. The MACD histogram displays early signs of bullish momentum divergence despite the bearish trend direction.

Tom DeMark developed the TD Sequential indicator to locate trend exhaustion points with a few consecutive closings to indicate a downtrend reversion. The introduction of the characteristic “9” reading on Cardano’s chart is an indication that momentum may be slipping to the downside. Analysts believe that after a prolonged decline, there are more buyers entering at these lower levels, which is indicated by long lower wicks on recent candles indicating support under the current price action.

Cardano has proved to be very resilient in the past year due to the support level of $0.52. Chart analysis shows many past rallies from this level until early and mid-2025, establishing this zone as a psychological and technical underpinning for the asset. Every time ADA has tested this level, buyers have come out to defend it creating a pattern that gives the impression of accumulating instead of distributing.

If this support level is established, analysts have $0.58 as their initial targets in the short-term, which translates to about a 12% increase from the current levels. A successful reclaim of the $0.60 resistance could lead to some more movement towards $0.68 and $0.71. The critical area to monitor is still the $0.65 to $0.70 range where trading above would likely alter the overall technical structure from bearish to neutral or even bullish.

At the same time, institutional players have been accumulating silently. Sentiment on-chain data shows that whale and shark Cardano wallets with 100,000 to 100 million ADA amassed 348 million tokens or $204 million in four days at the start of November. This represents almost 1% of the total in circulation in Cardon and a significant increase from the net selling observed in September and October.

Large holders in the 1 million to 10 million ADA range exhibited particularly high purchasing activity when prices dipped in the range of $0.60 or less, a history which has been associated with short term rebounds. This whale behavior is contrary to the wider market weakness, implying that sophisticated investors are observing current prices as a great entry point.

Analysts are keeping an eye on TD Sequential buy indicator, RSI reaching oversold area, possible MACD bullish crossover and price above crucial support. These factors make what many say is a great risk/reward situation for patient investors. Key confirmation signals that the traders should watch for are RSI breaking above 45 for momentum confirmation and the reclaim of the $0.58-0.60 resistance zone by ADA.

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