🔵 Cardano Long-Term Buy Zone for the Next Bull Cycle

Cardano is in the second bear market phase within a multi-year channel, and history shows where it could bottom out and begin to recover.

An analysis from TradingShot highlighted this trend in an April 20 commentary. The report showed that Cardano ($ADA) has been stuck within this range since the 2021 all-time high of $3.10, with prices currently in a corrective phase.

🔸 Second Cardano Bearish Leg

The 5-year channel has had periods of price consolidation and expansion. For context, after the 2021 peak, ADA entered a bearish phase within a tighter descending wedge, falling 92.3% from the high to $0.239 in December 2022.

Afterward, its price started to recover. From the low, it jumped 452% to reach this cycle’s high of $1.32 in December 2024. The price aligned with the channel’s upper resistance, where ADA’s bullish momentum faded.

🔸 ADA’s Current State

Meanwhile, Cardano has corrected 75.5% from the current bearish channel’s highest price of $1.02 to its current market price of $0.249. The analyst compared the current price point to that of June 2022, when ADA was in the first bearish channel.

During that time, there was a bullish divergence in the weekly timeframe, with prices making lower lows while the RSI made higher lows. This divergence took time to materialize, but when it did, the coin broke out of the bearish channel and targeted higher prices. The analyst has spotted the same bullish divergence, suggesting that ADA could replicate the price action seen in 2022 if history repeats.

🔸 Ideal Long-Term Buy Zone

TradingShot also drew on historical data to project when Cardano was likely to bottom out. According to the commentary, ADA could drop lower to at least $0.10 by the end of the year if the 2022 bear cycle pattern repeats and the coin drops 92.3% within the channel. This would mark another 59.8% drop from the current market price.

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