Is Cardano (ADA) Set for a Comeback? Key Buy Signals Light Up

Cardano (ADA) is showing early signs of a potential short-term shift. At the time of writing, the asset traded at $0.466, with a slight drop in the last 24 hours and an 18% decline over the past week.

While pressure on the asset remains, recent indicators suggest a pause in the current downtrend.

Technical Signals Show Change in Momentum

Analyst Ali Martinez reported a bullish divergence between ADA’s price and the Relative Strength Index (RSI). The price has continued to post lower lows, but the RSI is rising. This divergence may reflect a loss of selling strength.

A TD Sequential “9” buy signal has also appeared on the daily chart. These setups are often monitored for early trend shifts. Martinez commented, “A rebound is coming!” as long as the divergence remains intact.

In addition, ADA is trading slightly below its 4-hour 9-period simple moving average (SMA), which stands at $0.47. The asset has moved sideways since mid-November, narrowing its range. This shows that momentum remains weak but stable.

The MACD line has moved above the signal line, and the histogram has reversed to positive. Though the signal is still forming, it implies that the latest sell-off might be losing its strength.

On-Chain Flows Remain Negative

Recent on-chain data shows continued outflows from spot exchanges. On November 19, net outflows totaled $1.80 million, according to CoinGlass. Traders appear to be withdrawing ADA from exchanges, possibly for long-term holding.

Despite these outflows, ADA’s price has continued to fall. This trend points to weak demand, with buyers not stepping in despite the lower available supply. Outflows alone have not supported a recovery in price.

Sentiment and Whale Activity Remain Mixed

Platform data from Market Prophit shows that public sentiment toward ADA is currently negative, while its internal model indicates a bullish outlook. This reflects a split view across participants.

Analyst Man Of Bitcoin noted,

Meanwhile, large holders have reduced exposure. Over the past month, whales have reportedly sold 440 million ADA, which may continue to weigh on short-term price action.

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