Why ADA Price Is Primed For A Reversal

Cardano price inched up on Wednesday, fending off a sustained downward pressure to gain 0.8% and trade at $0.924 at the time of writing.

Cardano price showed a slight increase on Wednesday, gaining 0.8% to trade at $0.924 at the time of writing. However, the momentum on the crypto coin still signaled that the sellers were in control, with the RSI on the daily chart at 42.

ADA price had declined by more than 8% in the last week, but it was still up by 9.4% year-to-date. But why was ADA price primed for a reversal?

Despite the bearish-leaning imagery, the downward momentum on Cardano price seemed to be weakening. For one, the daily traded volume was down by 21.4%, signaling that investors were slow to trade in the coin during the price decline.

Also, the Average Directional Index (ADX) indicator reading on the daily chart was at 17 at the time of writing, affirming the weakening downward momentum. The ADX is a directional indicator, and a value below 25 typically signals a sideways market with little trend momentum.

The broader crypto market was under pressure earlier in the week, mirroring the sentiment in equities markets triggered by DeepSeek, the Chinese startup that created a storm in the AI sector.

However, the FUD sentiment seemed to have cooled as it becomes apparent that the startup’s impact on the market might have been overblown. Therefore, I expected Cardano price to pick up momentum in the coming days alongside the rest of the crypto market. In the medium term, ADA is a candidate for potential spot ETF approval, which will provide underlying support.

Cardano Price Prediction

Cardano price pivots at $0.910 and the momentum favours the continuation of the upside. The coin will likely meet the first resistance at $0.935, but an extended control by the buyers could break above that level and test $0.960.

Alternatively, moving below $0.910 will signal control by the sellers. The momentum will likely trigger movement to the first support at $0.897. The upside narrative will be invalid if the ADAUSD breaks below that level. In addition, it could extend the decline to test $0.880.