Cardano (ADA) Price: Inverse Head & Shoulders Points to Potential Rally

23-Jan-2026 CoinCentral

TLDR

  • Cardano (ADA) is trading at $0.37 after falling into a key decision zone between $0.33 and $0.36 support levels.
  • Analysts identify an inverse head-and-shoulders pattern forming, with a breakout above $0.40 needed to confirm a bullish reversal.
  • The weekly MACD indicator shows weakening downside momentum, suggesting ADA may be nearing a macro bottom after an extended bearish cycle.
  • If ADA holds above $0.33, the path could open toward $0.50, but a breakdown below this level risks a drop to $0.27.
  • Trading volume has declined to $702 million while open interest fell 1.10% to $650.16 million, with traders waiting for a clear directional move.

Cardano is trading at $0.37 after recent volatility pushed the token back into a high-stakes price zone. The cryptocurrency has declined 10.06% over the past week but gained 1.29% in daily performance.

Cardano (ADA) Price
Cardano (ADA) Price

ADA fluctuated between $0.3484 and $0.372 during the latest trading session. Trading volume reached $702 million, down 0.82% from the previous period.

The token now sits at a critical inflection point. Multiple technical analysts are watching for signs of either a breakdown or recovery.

Analyst Jesse Peralta identified an inverse head-and-shoulders structure forming on ADA’s chart. This pattern suggests selling pressure may be weakening as buyers establish higher lows.

The structure remains unconfirmed until ADA breaks above $0.40. A decisive move past this resistance level would mark the first meaningful trend reversal since the broader downtrend began.

Price is currently compressing beneath a descending trendline. This compression indicates the market is building energy for a larger move.

Technical Indicators Show Shifting Momentum

The weekly MACD indicator is beginning to stabilize after an extended bearish period. The MACD line sits at -0.0038 while the signal line reads -0.0062.

This type of stabilization often appears near macro bottoms rather than during continued downtrends. The histogram shows a slight negative reading of -0.0024 as the lines converge.

While the MACD remains in bearish territory, the weakening momentum adds weight to the idea that ADA may be exiting its exhaustion phase. Historical patterns suggest such shifts can precede structural changes in price direction.

The EMA 20 stands at $0.3823, acting as short-term resistance above the current price. The EMA 50 sits at $0.4051, showing continued pressure in the medium-term trend.

The EMA 100 at $0.4724 and EMA 200 at $0.5623 remain far above current levels. These indicators confirm ADA is still trading well below major trend markers.

Key Support and Resistance Levels

Analyst Mr. CryptoGeek highlighted the $0.33 level as pivotal for ADA’s next move. This support zone has repeatedly acted as a demand floor in previous cycles.

A bounce from $0.33 could open the path toward $0.50. However, a breakdown below this level would expose risk extending to $0.27.

Marcus Corvinus noted the zone between $0.33 and $0.36 as the primary area attracting buyers. He said this range has triggered reactions in past price action.

Corvinus stated that momentum must build within this range for a sustained bounce. He identified $0.53 as a major resistance level requiring strong continuation to break.

Analyst More Crypto Online said ADA needs to reclaim $0.404 to confirm initial bullish control. He described this level as the primary technical catalyst for buyers.

Market Data and Derivatives Activity

Futures volume rose 2.51% to $1.20 billion according to CoinGlass data. Open interest decreased 1.10% to $650.16 million.

The funding rate sits at 0.0014%, indicating balanced positioning among traders. This neutral funding suggests neither bulls nor bears hold a strong advantage in the derivatives market.

Analyst Yakov observed that Cardano has been consolidating at low price levels for an extended period. The multi-month consolidation range shows price repeatedly compressing before expanding.

This sideways movement at macro support levels typically reflects accumulation rather than distribution. Extended consolidation phases at lows often resolve with directional expansion once supply is absorbed.

ADA is currently trading at $0.3635 as traders wait for a clear break from the demand zone.

The post Cardano (ADA) Price: Inverse Head & Shoulders Points to Potential Rally appeared first on CoinCentral.

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