Cardano Experiences 10% Rise – Will ADA's Price Recovery Last into 2026?

Cardano (ADA) has faced a significant decline since the highs observed during the 2024 U.S. election rally, erasing its impressive 300% rise within just a year. Following a market downturn in late 2025, ADA's price has settled back into the $0.32-$0.36 support range, a crucial point that initially triggered the token's rise. Investors are now questioning whether ADA can rally again from this level.

Key Takeaways

Cardano has decreased significantly from its 2024 rally highs, currently testing support levels.
Recent technical indicators suggest a potential price reversal for ADA.
A lack of selling pressure due to long-term holders at a loss may present a buying opportunity.
A drop below $0.32-$0.36 would negate bullish sentiments.

Cardano's 10% hike - Will ADA's price recovery extend into 2026?

Analyzing ADA's Price Movements

Could This Be ADA's Bottom?

Since mid-December, ADA's price activity has shown a degree of resilience, indicating possible signs of a reversal according to various technical indicators. During November and December, as ADA reached new lows, the daily Relative Strength Index (RSI) set higher lows, which suggests a bullish divergence for the cryptocurrency.

ADA Source: ADA/USDT, TradingView

Moreover, ADA experienced a MACD golden cross, coinciding with a 10% rally post-Christmas. This surge saw the altcoin increase from $0.34 to $0.37. If the support level holds, this upward momentum could persist. However, one critical measure for ADA bulls will be to reclaim the 50-day Moving Average (MA, represented in white) at $0.42. If successful, the next target for upward movement is the previous support level of $0.50 observed in 2025.

Additionally, the monthly liquidation heatmap reinforces this idea, highlighting potential liquidity pools upwards at $0.39 and $0.42, corresponding with the 50-day MA. On the downside, leveraged longs sit at $0.34, making these levels significant indicators of potential price movements in the near term.

ADA Source: CoinAnk

Should You Consider Buying ADA Now?

For long-term investors and holders, there is another positive sign indicated by the MVRV ratio, which reflects the fear and uncertainty among 3-month holders and those who have kept their tokens for more than a year. Specifically, 3-month holders have encountered a 25% drop, while annual holders face unrealized losses of 38%.

In simpler terms, many holders are currently at a loss and may choose to hold on to their investments until they can at least break even or turn a profit before selling.

ADA Source: Santiment

With the majority of holders currently in a deficit, the selling pressure at current levels is minimal. This situation could provide a solid buying opportunity. However, if ADA slips below the established support of $0.32-$0.36, it might invalidate the recovery outlook, potentially pushing the price down to the 2023 low of $0.24.

Conclusion

As Cardano continues to demonstrate signs of recovery, investors remain cautiously optimistic. Monitoring key price levels and market indicators will be crucial for those looking to make informed decisions in the evolving cryptocurrency landscape.