In the vast and volatile world of cryptocurrencies, Bitcoin (BTC) has long held the crown as the leading digital asset. However, recent market signals suggest that Cardano (ADA), once a promising altcoin contender, might be gearing up for a surprising breakout that could see it outperform Bitcoin in the near future. This possibility has generated considerable interest among investors and analysts alike, who are watching ADA’s technical and on-chain indicators for signs of a sustained rally.

At the heart of this optimism is a rare reversal signal in Cardano’s buy/sell pressure delta — a technical measure that tracks the balance between buying and selling activity. Joao Wedson, CEO of crypto analytics firm Alphractal, recently pointed out that ADA’s buy/sell pressure delta is showing a shift from prolonged selling into bullish territory for the first time in several months. This pattern, observed in previous market cycles around 2020 and 2021, often precedes significant price upswings, marking a potential turning point for ADA.

This shift is visible on both ADA/USDT (Cardano against the US dollar) and ADA/BTC (Cardano against Bitcoin) charts, which indicate increasing buy pressure after a period of sustained selling. Given that Bitcoin has maintained relative stability with less pronounced swings, this divergence could position ADA for a comeback rally.

While Bitcoin continues to dominate the crypto landscape, with prices hovering steadily above $104,000 and an RSI (Relative Strength Index) of around 47.80 — indicating neutral momentum — Cardano’s price trajectory has been markedly different. ADA recently dropped below $0.60, with its RSI falling to 32.86, placing it firmly in oversold territory. The RSI is a key technical indicator used to gauge whether an asset is undervalued (oversold) or overvalued (overbought), and values below 30 typically signal a potential reversal zone.

The steeper decline in ADA compared to BTC, coupled with the oversold RSI, suggests that Cardano might be closer to a rebound than Bitcoin. This technical divergence, alongside early bullish signs in buy/sell pressure, gives traders a glimpse of potential short-term upside.

Further supporting this narrative is the behavior of the Moving Average Convergence Divergence (MACD) indicator on both ADA and BTC charts. While both show red bars signaling ongoing downward momentum, ADA’s sharper losses and lower RSI suggest it might be bottoming out sooner, readying for a bounce back.

Despite these positive signals, caution remains necessary. Historical data reveals that past buy pressure reversals for ADA have not always translated into sustained rallies, particularly against Bitcoin. ADA/BTC charts show multiple occasions when green surges in buy pressure failed to reverse the overall downtrend, indicating that momentum shifts alone may not guarantee a breakout.

One of the significant hurdles for Cardano is Bitcoin’s continued market dominance. BTC still holds a commanding share of the overall cryptocurrency market, often dictating broader sentiment and price movements. This dominance makes it challenging for altcoins like ADA to break away and outperform in a meaningful way without broader shifts in investor appetite.

That said, the current price level near $0.60 could act as a crucial support zone for Cardano. For investors willing to take on some risk, this level may represent an attractive entry point ahead of any potential recovery. It’s important, however, to be prepared for possible additional downside or sideways consolidation before any significant upward momentum can take hold.

Beyond the charts and numbers, several factors might fuel ADA’s bullish case in the coming months. Cardano’s development team continues to make progress on network upgrades and scaling solutions, which improve usability and could boost adoption. Growing interest in decentralized applications (dApps) and smart contract platforms may also help Cardano regain some lost market share, especially if it can capitalize on real-world use cases and partnerships.

The combination of technical indicators, on-chain metrics, and ongoing development work creates a cautiously optimistic picture for ADA holders. If Cardano’s buy pressure continues to build and Bitcoin experiences a cooling-off period, ADA could emerge as one of the leading altcoins poised for a strong comeback.

In summary, while Bitcoin remains the dominant player in the crypto arena, Cardano’s recent buy/sell pressure reversal and oversold technical setup suggest that it may be preparing for a breakout. Historical caution is warranted, as past signals have sometimes failed to sustain rallies. However, the current environment—marked by improving momentum, strong support levels, and ongoing network development—offers a compelling case for investors to watch ADA closely.

For those looking to diversify beyond Bitcoin, Cardano may present a promising opportunity. The next few weeks could prove critical in determining whether ADA can finally overcome its past challenges and outpace the king of cryptocurrencies.