Cardano (ADA) has slipped into oversold territory on daily charts, but technical analysts warn that depressed prices alone do not signal an imminent reversal, with one market observer identifying a critical resistance level at $0.45 that must be breached before bullish momentum can be confirmed.
What Happened: ADA Enters Heavy Pressure Zone
Analyst Trend Rider noted in a recent post on X that Cardano's price has entered what he describes as a "dark red zone" on his proprietary Rider Algo indicator.
While some traders view this area as a potential bottom, Rider characterized it as a zone of exhaustion where prices tend to drift sideways for extended periods. The analyst cautioned against attempting to catch the absolute bottom, arguing that such strategies typically result in either catching a falling knife or watching capital sit idle.
Rider said he is waiting for a decisive breakout and daily close above $0.45 before considering entry. "The key is not support, but escape," he wrote.
Separately, analyst Marcus Corvinus highlighted a demand zone between $0.33 and $0.36 where buyers have previously defended the price.
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Why It Matters: Market Structure Favors Bears
Corvinus noted that if this support zone holds and bullish momentum emerges, ADA could potentially target resistance near $0.53.
However, until buyers demonstrate sustained defense, bears maintain control of the market structure.
Both analysts emphasized timing over price. Rider specifically stated he would prefer entering at a higher price with confirmed momentum rather than gambling on what appears to be a bottom.
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