Cardano price has returned to a part of its weekly chart where a small move could matter. ADA is near $0.21 after a long decline, and analyst Jesse Olson has identified early signs that buyers may be pushing back.
His chart makes the case for a possible bounce, but it also shows why calling a full reversal now would be premature.
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Jesse Olson Sees a Reversal Candle and Green Dot on Cardano’s Weekly Chart
Jesse Olson pointed to 3 signs on the ADA weekly chart: a reversal candle, price above the trending dots, and a green trending dot. Each one adds something to his argument, though they do not all mean the same thing.
- The reversal candle shows a response from buyers. A look at the chart shows ADA recovering after a recent drop toward the lower boundary of a long descending pattern. Buyers have pushed the price back near $0.20. The current weekly candle is still open on the chart, so its final position matters more than its appearance partway through the week.
- Price has moved above the trending dots. The dots had followed ADA lower during its recent decline. Price moving above them is an early change in that relationship. It does not erase the larger downtrend, but it shows that selling pressure may be easing for now.
- A green trending dot has appeared. The indicator has changed from the pink dots that accompanied the decline to a green dot beneath the latest candles. Olson reads that as another early bullish sign. Like the candle, it needs support from subsequent weekly price action.
These clues are more useful together than they are separately. Buyers defended a lower area of the chart, ADA climbed above the indicator dots, and the indicator turned green. The next question is whether price can hold those improvements after this week closes.
The ADA Chart Shows Why a 77% Bounce Would Still Need Caution
Olson said a “dead cat bounce” could reach 77%. That sounds dramatic, but the phrase is deliberately cautious. It describes a recovery that takes place during a larger decline and may eventually run out of strength.
The chart’s measurement places ADA near $0.20 at the start of that possible move. A rise of roughly 77% from there would put the price around $0.36. That is an illustration of the distance Olson has marked on the chart, not a confirmed destination.
The wider view explains his caution. The chart marks a decline of more than 93% from Cardano’s earlier peak. It also shows ADA beneath a descending trendline that has connected several lower highs. Price has recovered toward that line, but a lasting reversal would require more than reaching it briefly. Buyers would need to push through the area and defend their progress afterward.
Another line on the chart runs near $0.47, well above the current Cardano price. That leaves considerable distance between an early bounce and a broader recovery. Olson’s 77% scenario could play out without ADA returning to the stronger levels shown earlier in its history.
The downside matters too. The recent low near the bottom of the descending pattern remains an area to watch if this attempt fades. That is why the green dot is best understood as an early clue, not proof that Cardano’s decline has ended.
Bitcoin and Greater Network Use Could Help Cardano Recover in 2026
The weekly chart tells us what ADA price is doing. A recovery lasting through 2026 would also depend on what happens beyond that chart.
Bitcoin and the wider crypto market are 1 part of the picture. New money often enters Bitcoin before reaching some altcoins. If Bitcoin improves and interest rates fall, investors may become more willing to take risks elsewhere in crypto. Cardano could benefit, although neither development guarantees that money will reach ADA.
Cardano’s own activity is another test. More people using its applications would mean more transactions and more fees paid on the network. Transaction fees contribute to staking rewards alongside Cardano’s reserves. Those reserves are separate from the treasury, so it would be incorrect to describe the treasury as the source of most staking rewards.
Greater network use could increase the contribution from transaction fees over time. That would give a Cardano recovery a clearer foundation than a price bounce alone. The key is regular activity, since a brief increase would reveal little about sustained demand.
Read Also: Urgent Silver Price Prediction: Analyst Bets on a Big Rally by Christmas
Midnight and Institutional Access Could Add to ADA’s Recovery Case
Midnight could bring more developers and applications into the wider Cardano ecosystem. Connections to other networks could also make it easier for assets to enter applications on Cardano. Both developments could create useful activity, but their effect on ADA price needs a closer look.
Midnight has its own token, NIGHT. More use of Midnight therefore would not automatically mean more demand for ADA. The stronger case would be one where new users and assets also make meaningful use of Cardano itself.
An ADA investment product could offer some institutions an easier way to access the asset. That remains a possible source of demand rather than a requirement for recovery. ADA could rise without one, and a product alone would not settle questions about network use.
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