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Cardano Just Triggered A Buy Signal Out Of Nowhere

Cardano Just Triggered A Buy Signal Out Of Nowhere

Cardano Just Triggered A Buy Signal Out Of Nowhere

In Brief

  • • Cardano has flipped its SuperTrend indicator bullish for the first time in weeks.
  • • ADA broke above a key resistance zone after a deep capitulation wick.
  • • A confirmed close above the trend cloud could signal a larger reversal forming.

Cardano (ADA) may finally be showing signs of life. After weeks of grinding lower, the popular on-chain trend tool SuperTrend has flipped bullish on ADA, triggering a fresh buy signal that traders haven’t seen since the start of the November downturn.

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The shift comes at a critical moment where Cardano has been locked in a steady decline, repeatedly rejected at the upper edge of its trend cloud. Each bounce faded, each rally failed – until now, according to the chart shared by cryptocurrency expert Ali Martinez on December 4.

Specifically, ADA has pushed above the shared resistance zone in the analyst’s chart, marking the first confirmed break of the downtrend structure since early autumn. 

The SuperTrend indicator is known for catching major pivots rather than quick intraday noise. When it flips, it typically signals a market phase change rather than a short-term blip. After nearly a month of sell signals, this new buy call is the strongest technical sign that the pressure on ADA may finally be easing.

Potential Momentum Shift After Capitulation Wicks

The signal comes right after a deep wick into the mid-$0.38 area, a level that briefly flushed out liquidity before buyers stepped in aggressively. That rejection wick now looks like a classic capitulation event, often seen at the end of extended downtrends.

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For now, ADA is changing hands at the price of $0.4480, up 1.65% in the last 24 hours, recording a 3.48% increase across the previous seven days, as it moves to reverse the losses of 17.43% accumulated on its monthly chart, per the most recent information.

Cardano price 7-day chart.
Cardano price 7-day chart. Source: CoinMarketCap

All things considered, Cardano is fighting to establish itself above the SuperTrend cloud. A clean close above this zone would strengthen the case for a trend reversal, while a rejection could drag price back into consolidation. 

Momentum is fragile but finally pointing up. For traders who have been watching it bleed for weeks, this is the first encouraging sign.

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