Cardano Headed for Another 6x Surge? Signs of Reversal as It Tests Historic Support Level

▲ Cardano (ADA)

Cardano (ADA) has entered a historic support range known as a demand zone, raising the possibility of a technical rebound similar to the one that previously resulted in a surge of over 600%.

According to The Crypto Basic on February 18 (local time), Cardano’s price is currently holding within a historical demand zone that carries bullish signals from a long-term perspective. This range has served as a critical support level, sustaining weakened price momentum in the past and acting as a catalyst for strong rebounds. Analysts expect that if Cardano firmly maintains this level, it could demonstrate an impressive recovery in the future.

A prominent analyst on TradingView noted that Cardano is currently trading around $0.2826 and moving sideways near the key support level of $0.250. This demand zone has historically defended prices near bear market lows and has consistently functioned as a strong support area whenever market sentiment turned extremely negative. In fact, Cardano successfully rebounded from this support in June 2023 and surged more than sixfold to reach its cycle high of $1.32 in December 2024.

Analysts believe that Cardano is likely to repeat its previous pattern once again. They suggest the current price range could be recognized as a bottom, with a full-scale rally beginning as market conditions improve. In particular, if Cardano reclaims its former resistance level near $0.7914, it could potentially generate returns exceeding 200% over the long term. This price range aligns with the previous highs of $0.798 and $0.810 recorded in March 2024.

However, several conditions must be met for such an explosive rally to materialize. First, a broader recovery cycle in the cryptocurrency market, led by Bitcoin (BTC) and Ethereum (ETH), needs to take place. Although Cardano holds significant influence within the market, its market capitalization share is smaller than that of the top two assets, meaning the leading cryptocurrencies would need to drive the initial upward momentum.

It is also essential for Cardano to maintain its position above this historical demand zone. Although the price briefly fell to $0.2205 on February 6, it quickly rebounded strongly. Avoiding a close below the support level on key time frames remains crucial. In addition, improvements in macroeconomic conditions, renewed investor appetite for risk assets, and fresh liquidity inflows are expected to serve as key catalysts for this potential rebound.

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