3 Reasons Why A Cardano Price Rebound Looks Likely

Cardano (ADA) price has been under pressure, dropping nearly 30% over the past month to test its strongest support at $0.45–$0.44. Despite being one of the weakest large-cap coins this month, several technical indicators suggest a potential rebound if this key zone holds. Here’s why Cardano could be setting up for a reversal.

1. CMF Bullish Divergence and OBV Trendline Break

The Chaikin Money Flow (CMF) indicator has formed a bullish divergence, with the line turning positive while price made lower lows. This signals building buying pressure beneath the surface.

Similarly, the On-Balance Volume (OBV) has broken above its downward trendline as ADA hit the $0.45 support. OBV had been trapped below this line for weeks, matching the price decline. The breakout indicates that volume is shifting toward buyers, a classic precursor to reversals.

2. Spent Coins Drop 27% – Long-Term Holders Stay Put

On November 1, spent coin activity peaked at 159.01 million tokens moved. By November 19, this metric had fallen 27%, even as price continued sliding.

This sharp reduction in token movement during a sell-off shows that long-term holders are avoiding panic selling. Fewer coins are changing hands, suggesting Cardano is defending its trendline support rather than breaking below it. When spending drops this dramatically in corrections, it often strengthens the case for a rebound.

3. $0.60 Break Needed for Short-Term Trend Flip

Cardano is trading directly on the lower trendline of its falling wedge pattern and its major support at $0.45–$0.44. If this zone holds on a daily close, ADA can attempt a rebound.

A move above $0.60 would flip the short-term trend bullish and target a wedge breakout. This level aligns with the 50-day EMA and has acted as resistance multiple times. Breaking it cleanly could open the door to $0.70 or higher.

The Bigger Picture

Cardano’s MVRV ratio sits at negative 20.47% (30-day) and 13.44% (7-day), indicating the token is undervalued. Positive funding rates and oversold RSI conditions further support a potential bounce.

However, a break below $0.44 could invalidate the bullish setup and target $0.40. For now, the confluence of divergence, volume signals, and holder resilience points to a rebound opportunity if support holds.