Cardano Shows 12H Bullish Divergence; $0.33–$0.35 Support Key for ADA Rebound
Cardano (ADA) is holding a bullish structure above a critical support zone at $0.33–$0.35, suggesting a potential price rebound despite a 3.4% decline so far this week. A TradingView analysis flagged an active bullish divergence on the 12-hour RSI: between Nov 21, 2025 and Jan 1, 2026 ADA made lower lows while RSI made higher lows, a pattern often interpreted as downtrend exhaustion and a precursor to upside breakouts. ADA recently retested the $0.33–$0.35 demand area multiple times (mid-December and late December) and recovered each time; failure to reclaim a descending resistance line led to another retracement to this support. The analysis sets potential upside targets at $0.42 and $0.47 (aligned with early January and December highs). The bullish case is invalidated if ADA breaks below $0.33 (approx. an 8.3% drop from $0.36). The report cautions that market weakness may still prevent a rally and emphasizes risk management. (Main keywords: Cardano, ADA, bullish divergence, RSI, support zone, price targets)
Bullish
The article outlines technical factors that favor a bullish outlook for ADA: an active 12-hour bullish divergence on the RSI and repeated defense of the $0.33–$0.35 demand zone. Historically, RSI-price divergences that persist through consolidation often precede recoveries as momentum shifts ahead of price; repeated successful retests of a demand area increase the probability of a bounce. The stated upside targets ($0.42 and $0.47) are logical next resistance levels aligned with recent highs. Short-term impact: traders may view this as a tradeable long setup with defined invalidation ($0.33), so expect increased buy interest and tighter stop placement near the support band. This can lead to short-term bullish price action and reduced downside volatility if buyers defend the zone. Long-term impact: if ADA holds the support and breaks the descending resistance convincingly, it could renew a broader uptrend toward the targets; conversely, a break below $0.33 would likely trigger further selling and negate the bullish case. Overall, the technical setup is constructive but conditional—market-wide weakness or negative macro events could still suppress follow-through, so risk management and confirmation (break of resistance or sustained RSI improvement) are advisable. Historical parallels: similar bullish divergences on mid-term RSI accompanied by defended supports have preceded rallies in other altcoins, but outcomes depended on market liquidity and macro risk sentiment.