- $ADA forms market structure shift with break of prior lows, signaling institutional demand and potential continuation above $0.4697 resistance.
- Monthly trendline around $0.40–$0.42 remains intact, showing long-term accumulation and supporting potential bullish reversal with volume expansion.
- Market capitalization stabilizes near $15B, confirming absorption of selling pressure and opening the path toward liquidity targets above $0.60.
$ADA is testing crucial support levels, signaling a potential shift in market structure. Price action indicates slowing selling pressure and strong demand near previous lows. Traders and investors are closely monitoring the $0.40–$0.42 region for confirmation of bullish continuation.
Daily Chart Signals Market Structure Shift
Recent analysis of ADA/USDT on the daily chart shows a clear market-structure shift after an extended downtrend. Price spent weeks forming lower highs and lower lows, confirming a bearish trend. A liquidity sweep below the previous month low at $0.3876 triggered institutional buying interest.
Following this base formation, a Market Structure Shift (MSS) occurred, along with a Break of Structure (BOS), suggesting that bears are losing control. The highlighted order block near the lows represents strong institutional demand, supporting a potential bullish move.
Traders are watching the $0.4697 resistance level closely, as a clean daily close above could signal acceptance and continuation.Upside targets based on liquidity include $0.6189, $0.6938, and $0.7360.
Analysts suggest scaling out at these levels while trailing stop losses to break-even after the first target. Maintaining price above the demand zone is critical for the bullish thesis to remain valid.
Monthly Trendline Support Remains Intact
The monthly ADA/USD chart indicates that price is still holding a long-term ascending trendline established over multiple market cycles. This trendline has repeatedly attracted demand around the $0.40–$0.42 zone.
ADA requires an impulsive bounce from this trendline, accompanied by expanding volume to confirm buyers are actively re-entering the market. Without this bounce, sideways movement could further weaken the trendline over time.
Momentum indicators show hesitation on whether ADA can generate enough upward momentum to reclaim resistance levels and validate the bullish structure.
Market Capitalization and Short-Term Dynamics
The recent short-term market capitalization cycle demonstrates expansion, distribution, and stabilization. A sharp surge in early December pushed market cap toward $17.5–18B, reflecting aggressive spot buying and momentum trading.
Following this surge, ADA experienced a distribution phase marked by lower highs and choppy price action. The sharp drop near $15B created a short-term demand floor, helping to absorb selling pressure. Since that move, ADA’s market cap has stabilized and moved sideways, showing consolidation and signs of renewed buying interest.
If fresh capital flows push the market cap above $15.8–16B, bullish momentum could strengthen. On the other hand, failing to hold the $15B level might open the door to a deeper pullback.
