Cardano Shatters Downtrend: ADA Eyes $0.50-$0.60 as $0.40 Resistance and RSI Divergence Flash Bullish Signal
Cardano's ADA just sliced through a critical technical barrier—and the charts are screaming for a major move.
The Breakout That Changes Everything
Forget the sideways grind. ADA has decisively broken a key multi-week downtrend, shifting the momentum from defensive to aggressively opportunistic. This isn't a minor blip; it's the kind of chart action that gets traders' attention and portfolio managers nervously checking their exposure.
Resistance Becomes the Launchpad
All eyes are now locked on the $0.40 level. What was once a stiff ceiling is transforming into the next logical stepping stone. The real story, however, is brewing in the momentum indicators. A bullish RSI divergence has been quietly forming—a classic signal that selling pressure is exhausting itself just as price finds a floor. It's the technical setup purists live for.
The Target Zone: $0.50 to $0.60
With the downtrend broken and momentum aligning, the path is clearing for a run toward the $0.50–$0.60 range. This isn't wild speculation; it's a measured projection based on the structure of the breakout itself. These levels represent the next significant areas where previous buyers and sellers might re-engage—or where profit-taking could begin. In a market obsessed with Bitcoin ETFs and memecoin mania, Cardano is making a quiet, technically-driven case for a serious re-rating.
So, while the usual finance pundits debate macro noise and inflation prints, ADA's chart is doing all the talking. Sometimes, the best trade isn't chasing the hype—it's spotting the asset that's just finished its homework while everyone else was distracted.
After months of downside pressure, Cardano price is now trading at a level that could mark an important turning point. Momentum is beginning to improve beneath the surface, and participants are watching closely to see whether this move develops into a broader recovery or fades like previous rallies.
ADA Pushing for Bullish Divergence
According to Sssebi, cardano price is flashing a clear bullish divergence, with RSI forming higher lows while price previously printed lower lows. His chart highlights this momentum shift developing beneath the surface, often a sign that selling pressure is fading even before price confirms a breakout.
ADA shows a bullish RSI divergence as price tests the $0.40 resistance, hinting at fading selling pressure and a possible momentum shift. Source: Sssebi via X
While ADA is still testing the $0.40 resistance zone, the bullish divergence suggests downside momentum has weakened materially. Historically, similar RSI structures in Cardano have preceded trend reversals.
Trendline Break Marks Structural Shift for Cardano
A more decisive technical signal comes from Jesse Peralta, who noted that cardano price has broken its primary downtrend for the first time since October 2025. His chart illustrates a clear descending trendline that capped every major rally attempt throughout the correction, until now.
Cardano breaks its long-standing downtrend for the first time since October 2025, signaling a potential structural shift toward higher price targets. Source: Jesse Peralta via X
Peralta described the MOVE as a “key breakout,” suggesting that Cardano could target the $0.50–$0.60 region if the breakout holds. From a structural standpoint, this marks a transition from persistent lower highs into a neutral-to-bullish framework.
Longer-Term Chart Patterns Hint at Larger Upside Potential
Zooming out, RoccobullboTom highlighted a much broader formation developing on higher timeframes. His chart shows ADA consolidating above long-term ascending support, with price compressing beneath descending resistance.
Cardano continues to build a higher-timeframe base above long-term support. Source: RoccobullboTom via X
While his projection suggests ADA could eventually move above $1 in a favorable market environment, it’s important to note that such outcomes depend heavily on confirmation, volume expansion, and broader market participation. Still, the presence of a higher-timeframe base strengthens the long-term Cardano price prediction narrative.
How High Can Cardano Price Go in 2026?
Looking into 2026, Cardano’s upside potential largely depends on whether the current breakout attempt evolves into a sustained trend rather than another short-lived rally. From a structural perspective, ADA reclaiming and holding above the $0.40–$0.42 zone WOULD be the first confirmation that the broader downtrend has transitioned into a recovery phase.
Cardano price is trading around $0.40, up 2.35% in the last 24 hours. Source: Brave New Coin
In a base-case scenario, continued acceptance above $0.40 could allow Cardano to gradually work towards the $0.50 to $0.60 region. In a stronger bullish scenario, where momentum builds alongside improving volume and broader market participation, Cardano price could extend beyond the $0.60 region and challenge higher resistance bands over time. Projections towards $1.00 and $2.00 remain possible but would require sustained accumulation, expanding liquidity, and confirmation across multiple timeframes.
As long as ADA holds above its reclaimed structure and avoids falling back below key support levels, upside scenarios remain technically valid.
Final Thoughts
Cardano’s recent price action reflects a meaningful improvement in structure, with trendline breaks, RSI divergence, and sustained support defense all pointing towards a potential shift in momentum. While confirmation is still required, the technical backdrop is notably stronger than in previous failed rallies.
For now, Cardano price remains focused on the $0.40 resistance as the primary inflection point. Whether ADA transitions into a sustained uptrend or revisits consolidation will depend on how price behaves around this level.
