Cardano (ADA) is holding a long-term support area while a bullish divergence on the MACD (moving average convergence divergence) has appeared, prompting discussion of possible price expansion.

The Crypto Basic, a blockchain outlet, reported on Tuesday that analyst Javon Marks (자본 마크스) pointed to two signals for Cardano on the ADA/USDT three-day chart.

Marks said Cardano formed a support area in the shape of a "huge base" over several years. The zone supported the downtrend after the token fell from its all-time high of $3.10 in 2021. Cardano dropped more than 90 percent to $0.239 in December 2022 before rebounding quickly. It also fell again to $0.220 in June 2023 and then showed a similar recovery. Each time it retested the support area, a rebound followed.

He also cited a similar base forming in 2019 to 2020, and pointed to a past case in which Cardano rose more than 14,705 percent from a low of $0.0177 in March 2020 to $3.10 in 2021.

A bullish divergence appeared on the MACD. As Cardano's price made lower lows within the base area, the MACD line formed higher lows. Marks said that if the long-term support holds and this divergence aligns with it, another price expansion could occur. He marked a possible move to $10, 3,868 percent above the current price, on the chart.

Some warn, however, that technical signals do not necessarily lead immediately to gains. While it is positive that the long-term support area is holding and a bullish MACD divergence has been confirmed, whether the trend actually reverses depends on future trading volume, a break above resistance, and whether risk-asset sentiment across the broader market recovers.

In particular, the $10 outlook is closer to a long-term scenario based on a past upcycle. Whether Cardano can move beyond a short-term rebound and enter a full-fledged price-expansion phase is expected to hinge on defending key support levels and on whether it can draw additional buying interest from the market.

$ADA, per its previous run and MACD, looks to be setting up a huge base/support again for another huge upside move... (Cardano) pic.twitter.com/KyjKXPEkEP