Cardano (ADA) has risen 8 percent recently, showing a potential short-term rebound, but an analysis said it has still not broken out of a bearish trend.

On March 18, blockchain media outlet The Crypto Basic reported that Cardano could offer an interesting investment opportunity even amid a recent downtrend.

Analyst Jack Humphries said Cardano failed to keep up even as bitcoin set new highs and fell from $3.10 to $1.32. He said Cardano's weakness stands out given that rival altcoins such as Ethereum and Ripple also set new records. He also pointed to a negative signal in Cardano being pushed out of the top 10 by market capitalisation after being overtaken by new coins such as Hyperliquid.

However, experts forecast Cardano has limited room for further declines. Humphries said Cardano fell to $0.2205 and formed a strong support level. He advised that a strategy of entering at the right time to target short-term gains is more effective than long-term holding. If bitcoin's strength continues, major altcoins are also likely to rise, and Cardano is expected to follow the trend.

Humphries also said Cardano and other smart contract blockchains need a new narrative to expand adoption. For long-term growth potential, the ADA ecosystem needs to find a 'big problem' to solve. Humphries was optimistic about that possibility and emphasised the network's strong security features. If these factors come together, he said ADA could catch up with bitcoin, and capital rotation not seen in the previous cycle could occur in the near term.

An analysis also said Cardano needs to build a new narrative for long-term growth. Humphries said it needs a 'big problem' Cardano can solve. He added that, given its strong security and network scalability, a rebound is likely if the right use case emerges. He forecast Cardano could rise 3 to 4 times to $0.84 to $1.12 and could also set a record high if the market turns bullish.