As Cardano nears the upper boundary of a long-term descending wedge, whether it reclaims $0.20 has emerged as a key turning point for a possible trend reversal.

The Crypto Basic, a blockchain media outlet, reported on July 21 that Sheldon of market analysis firm Crypto Banter said in a recent YouTube live broadcast that Cardano is moving within a descending wedge on the weekly chart and could rise to the $0.50 to $0.60 range if it breaks out of that zone.

He assessed the current structure on the ADA/USDT weekly chart as very positive. He explained that the lower support line was formed from the $0.27 low during a sharp drop in October last year, while the upper resistance line formed after the $0.48 high in early December last year. Cardano has since continued to make lower lows between the wedge’s upper and lower boundaries.

More recently, the lower support line was again seen as acting as a backstop. Cardano slid to $0.138, a level matching its 2020 low, as bearish pressure grew in June, but the support held and it rebounded 27 percent to its current price of $0.175. Markets are watching whether the rebound is a simple technical pullback or leads to a structural trend shift.

Sheldon pointed to $0.20 as a key level. Even if the rebound continues, he said Cardano must reclaim $0.20 and trade above it for a descending-wedge breakout to be confirmed. Based on the current price, it would need at least a further 14 percent rise. If that condition is met, the target zone is $0.50 to $0.60. That is 186 to 243 percent above the current price and overlaps with last November’s price range.

That outlook is also linked to expectations for a broader cryptocurrency market recovery. Sheldon set September as the timing for Cardano’s breakout and pointed to a view that the overall market could enter a more sustained recovery phase from the fourth quarter of 2026. He also said the current price range is attractive, and flagged the point when it starts moving toward $0.20.

A separate analysis identified a bullish pattern on the daily chart. Cardano stake pool operator (SPO) Sevi analyzed that an inverse head-and-shoulders pattern was completed, with the left shoulder at $0.148 on June 6, the head at $0.138 on June 25 and the right shoulder around $0.155 on July 13.

Sevi set $0.25 as a price target if the pattern remains valid. That is about 43 percent above the current price. The call is conditional on the uptrend holding and defending the area around $0.155, where the right shoulder formed. The pattern could be invalidated if the daily close falls below $0.155.

In the end, Cardano’s near-term focus narrows to defending $0.155 and reclaiming $0.20. The $0.155 level is the zone that determines the validity of the short-term bullish pattern, while $0.20 is the price level used to confirm a breakout from the long-term descending wedge. The viability of scenarios toward $0.25 and $0.50 to $0.60 is expected to vary depending on the order and strength with which it moves through the two levels.