Cardano (ADA) traded sideways on Wednesday as holders gauged its near-term direction amid elevated crypto market liquidity.
Notably, over the past week, the cryptocurrency slipped nearly 9% as intensified selling across the broader crypto market weighed on the token, despite a period of relative stability midweek.
Meanwhile, according to analyst Crypto Patel, the current valuation of ADA may significantly undervalue its long-term potential.
In a post on X, the analyst highlighted the asset’s regulatory positioning and long-term technical structure as reasons for optimism.
“ADA just got classified as a commodity and it’s still 90% down from its all-time high,” he wrote.
 
Additionally, analyst Javon Marks noted that the cryptocurrency’s technical setup appears to be forming a strong base similar to conditions observed during previous market cycles.
According to the analyst, the Moving Average Convergence Divergence (MACD) indicator, a widely used momentum tool, suggests that ADA could be preparing for another major upward movement.
He explained that the current price structure resembles the early stages of past rallies, where the asset first formed a solid support zone before launching into an extended bullish run.
“ADA, per its previous run and MACD, looks to be setting up a huge base/support again for another huge upside move,” he said.
However, not all analysts are convinced that the bullish case will play out immediately, and caution that ADA must first find firm footing at key support levels before any sustained recovery can take hold.
Nevertheless, analyst AltCryptoGems noted that the asset is currently testing an important support zone.
According to him, traders should remain cautious in the near term until the market confirms a stronger recovery.
“ADA is kind of losing support, so right now we should definitely be careful with longs. But if the price manages to give a decent bounce and reclaim a bullish structure on lower time frames, we could see a nice price reversal at this key support level,” he said.
Elsewhere, analyst Alpha Crypto Signal offered a more bearish interpretation of ADA’s current technical structure.
In a higher-timeframe analysis, the analyst argued that the asset may be forming a rounding top pattern, a structure sometimes associated with fading bullish momentum.
According to the analysis, ADA has been producing a series of lower highs while trading below key moving averages, suggesting that buyers may be gradually losing strength.
“Structure shows distribution, with lower highs developing inside the curved top, signaling fading bullish strength,” the analyst stated.
“Rejection from the neckline confirms downside continuation. The short bias remains valid as long as ADA stays below the moving-average cluster,” he added.
However, the analyst added that the bearish setup would be invalidated if ADA were to reclaim and hold above the curved structure, a move that could restore neutral momentum and potentially reopen the path toward higher levels.
At press time, ADA was trading at $0.24, reflecting a 0.61% boom in the past 24 hours.
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