Is ADA preparing to "overthrow" Bitcoin?

While Bitcoin is still basking in the glory of the market, in a quieter corner, Cardano (ADA) seems to be quietly preparing for a spectacular breakout – something that seems unlikely but cannot be ruled out.

Joao Wedson, CEO of Alphractal, recently made a surprising remark: "Cardano may soon surpass BTC" – a statement that has caught the attention of analysts.

With the rare reversal signals amid buying and selling pressure, ADA may be on the verge of a surge exceeding expectations.

Could this be the spectacular comeback that the market had no prior knowledge of?

Is Cardano preparing for a breakout?

The buy/sell pressure Delta of ADA is recording a rare reversal signal – a phenomenon that often serves as an early warning for a strong price increase about to occur.

Source: AlphractalBoth trading pairs ADA/USDT and ADA/BTC currently show similar signals: The Delta buying/selling pressure is escaping the prolonged selling zone and has, for the first time, shifted to the positive zone after months of stagnation. This could be an important turning point, signaling that ADA is entering a recovery phase with new momentum.

Source: AlphractalThis transition – similar to what occurred in 2020 and 2021 – is often a signal marking the beginning of strong growth cycles.

When Bitcoin begins to "cool down" and ADA shows signs of acceleration, the charts seem to suggest a return that has been delayed for too long – and perhaps, a rise that this altcoin is quietly forming.

A little pain for long-lasting glory?

In recent weeks, ADA has significantly dropped deeper compared to Bitcoin, sliding below the $0.6 mark with an RSI of 32.86 – clearly in the oversold region.

Source: Trading ViewConversely, BTC remains stable above $104,000, with the RSI around 47.8, reflecting a neutral upward momentum and a sideways trend.

Source: Trading ViewAlthough both show red MACD bars – a negative sign of momentum – the steeper loss and lower RSI of ADA indicate that this altcoin is approaching a potential reversal zone. Meanwhile, Bitcoin seems to still be in a phase of accumulation and consolidation.

This clear divergence could provide a recovery advantage for ADA, especially as on-chain indicators begin to signal initial bullish trends – opening up the possibility of Cardano leading the next altcoin wave.

Be careful ahead

Although spikes in the delta buy/sell pressure indicator often signal strong recoveries ahead, the ADA/BTC chart tells a different story. In the past, some strong buying pressure spikes – marked by green peaks on the chart – were not enough to reverse the overall downtrend.

Despite the times when capital inflows surge, ADA still struggles to overcome its relative weakness compared to Bitcoin. This forces investors to maintain a cautious and limited optimism.

With BTC's dominance still overwhelming and precedents showing that recovery signals have often been misleading, the ADA bulls need to be wary of the risk of another "fake breakout."

The $0.6 mark may open up accumulation opportunities – but only for those investors who are patient enough and willing to face short-term volatility before witnessing any real recovery.

Dinh Dinh