Cardano fell nearly 5% to $0.17 after last week’s 33% rally

Cardano pauses after sharp weekly rally

Market analyst Daan Crypto Trades noted Cardano’s strong performance last week, outperforming many major crypto assets. While this signals a possible gradual return of risk appetite in the altcoin market, analysts emphasize that one wave of gains is not enough to establish a sustained upward trend.

Cardano emerged as a leading large-cap altcoin last week, but experts stress that this move requires support from another upward leg to be considered sustainable growth.

The current pullback is seen as a natural breather following the sharp rebound from June lows. If ADA stabilizes here and regains upward momentum, the first recovery zone is expected between $0.19 and $0.20. A break above that range could refocus investor attention toward the $0.22 and higher levels.

RSI divergence keeps recovery hopes alive

Technically, a key signal highlighted by Token Talk was positive divergence on the ADA chart: while price formed a new low, the Relative Strength Index (RSI) produced a higher low. This pattern often points to waning downside momentum, even if prices remain under pressure.

Glossary: RSI is a technical indicator that measures the speed and strength of price movements. Positive divergence means the indicator does not confirm a new price low, suggesting selling momentum may be fading.

Nonetheless, analysts caution that the market must confirm this signal. For ADA to maintain strength, it is seen as crucial for the price to hold above $0.1850. If this level is retained, a retest of $0.22 and potentially $0.25 could follow in the near term.

On-chain data indicates surge in wallets

The technical outlook gains some support from on-chain metrics. According to BeInCrypto, citing Santiment data, 14,783 new ADA wallets with a non-zero balance have been created since the June bottom. Santiment is recognized as a leading analytics platform tracking on-chain activity and user behavior in the crypto market.

The data set also reveals ADA surged approximately 33% last week. The rise in new wallets suggests renewed interest, even as prices remain relatively subdued, indicating that the latest pullback may simply be a pause within a larger recovery attempt.

The $0.22-$0.25 range identified as key threshold

Val Me notes that after clearing equal lows, ADA may be approaching a buying zone, but a safer structure will only emerge if the $0.22 level is reclaimed and the $0.22-$0.25 band holds as support. This distinction is important: reacting from the bottom is not the same as converting the main resistance region into a new base.

For ADA to regain short-term strength, it first needs to stabilize above $0.17, then reclaim the $0.19–$0.20 zone. More meaningful structural improvement will be tested in the $0.22–$0.25 range.

The short-term outlook for Cardano remains cautiously optimistic. However, to confirm a broader recovery, ADA needs to steadily surpass multiple resistance barriers. A decisive break above $0.25 would make the $0.30 target increasingly realistic.