Cardano (ADA), one of the top blockchain projects by market cap, is drawing attention from technical analysts as it flashes signals of a possible bullish reversal. Following a week-long price drop, analysts now suggest that Cardano may be forming a classic chart pattern that could lead to a powerful upward move—if the token can hold a key support zone.

Cardano Price Drops but Technical Patterns Emerge

Over the past week, Cardano has been under pressure, falling from above $0.70 on June 12 to around $0.6203 by June 18. The 13.77% decline reflects the broader crypto market’s volatility, but analysts see potential in Cardano’s current price behavior.

According to a recent post from Rose Premium Signals, a well-followed analytical account on X, Cardano is showing signs of forming a triple bottom pattern—an indication that a trend reversal might be on the horizon.

Triple Bottom Could Signal Trend Reversal

The triple bottom formation is often viewed as a strong bullish signal in technical analysis. It appears when the asset price tests the same support level three times without breaking below, suggesting strong buyer interest at that zone.

Cardano’s first low in this pattern was recorded on February 3 at $0.51. The second retest of the same level came on April 7. With the price now moving toward this key level for a third time, analysts believe a third successful defense could establish the base for a significant rally.

If ADA maintains this level and rebounds, the chart formation could confirm a triple bottom, opening the door for a trend reversal.

Falling Wedge Adds to the Bullish Setup

Adding more weight to the bullish thesis is the appearance of a falling wedge pattern on Cardano’s chart. This technical formation occurs when the price is moving within a narrowing range between two descending trendlines. The falling wedge is typically considered a bullish setup, as it often precedes a breakout to the upside once the upper resistance line is broken.

Previous attempts to break this pattern’s upper trendline have failed, notably on December 2, when ADA hit $1.30, and again on March 3, when the price peaked at $1.17. However, with the price once again tightening within this formation, analysts suggest that a breakout could be imminent if momentum returns.

Important Price Levels and Targets to Watch

If ADA successfully holds the $0.51 support level and forms a bullish weekly candle, the first resistance zone lies around $1.0057. Surpassing this area could see ADA move toward $1.2114, and eventually $1.4329—marking a potential gain of over 131% from current levels.

These targets are derived from previous resistance zones and Fibonacci retracement levels commonly used in technical trading.

At the same time, Cardano needs to recover a critical price range between $0.68 and $0.70 to shift its medium-term trend from bearish to bullish. MasterAnanda, a technical analyst on TradingView, emphasized this area as key to ADA’s recovery.

The significance lies in the confluence of long-term moving averages around this zone. The 34-week exponential moving average (EMA34) is currently positioned at $0.70, while the 200-week moving average (MA200) sits at $0.67. Reclaiming this range could suggest the return of sustained bullish sentiment.

Long-Term Outlook Hinges on Key Support

Despite the recent downturn, the combination of the triple bottom and falling wedge patterns provides some optimism for Cardano holders. If ADA can maintain support above $0.51 and reclaim the critical moving average zone around $0.70, it may set the stage for a prolonged uptrend.

However, failure to hold this crucial level could invalidate the bullish patterns and expose ADA to further downside pressure, especially if the broader market remains under stress.

Conclusion

The coming days and weeks will be vital for Cardano as traders watch for signs of a breakout or a deeper pullback. With strong technical formations in place and critical support being tested, ADA could be on the verge of a major move.

While the crypto market remains unpredictable, Cardano’s price behavior is aligning with patterns that historically lead to significant upward shifts—provided buyers step in at the right moment.