Cardano Price News: Analyst Spots Early Signs of a Bullish Reversal

Cardano price has returned to a part of its weekly chart where a small move could matter. ADA is near $0.21 after a long decline, and analyst Jesse Olson has identified early signs that buyers may be pushing back. His chart makes the case for a possible bounce, but it also shows why calling a full reversal now would be premature. Jesse Olson Sees a Reversal Candle and Green Dot on Cardano’s Weekly Chart Jesse Olson pointed to 3 signs on the ADA weekly chart: a reversal candle, price above the trending dots, and a green trending dot. Each one adds something to his argument, though they do not all mean the same thing. The reversal candle shows a response from buyers. A look at the chart shows ADA recovering after a recent drop toward the lower boundary of a long descending pattern. Buyers have pushed the price back near $0.20. The current weekly candle is still open on the chart, so its final position matters more than its appearance partway through the week. Price has moved above the trending dots. The dots had followed ADA lower during its recent decline. Price moving above them is an early change in that relationship. It does not erase the larger downtrend, but it shows that selling pressure may be easing for now. A green trending dot has appeared. The indicator has changed from the pink dots that accompanied the decline to a green dot beneath the latest candles. Olson reads that as another early bullish sign. Like the candle, it needs support from subsequent weekly price action. @JesseOlson / X These clues are more useful together than they are separately. Buyers defended a lower area of the chart, ADA climbed above the indicator dots, and the indicator turned green. The next question is whether price can hold those improvements after this week closes. The ADA Chart Shows Why a 77% Bounce Would Still Need Caution Olson said a “dead cat bounce” could reach 77%. That sounds dramatic, but the phrase is deliberately cautious. It describes a recovery that takes place during a larger decline and may eventually run out of strength. The chart’s measurement places ADA near $0.20 at the start of that possible move. A rise of roughly 77% from there would put the price around $0.36. That is an illustration of the distance Olson has marked on the chart, not a confirmed destination. The wider view explains his caution. The chart marks a decline of more than 93% from Cardano’s earlier peak. It also shows ADA beneath a descending trendline that has connected several lower highs. Price has recovered toward that line, but a lasting reversal would require more than reaching it briefly.