Over the past week, Cardano’s price has consistently remained below the $1 threshold, largely due to recent market corrections impacting the entire cryptocurrency sector. On December 18, Cardano once again dipped under the $1 mark. Despite the overarching trend hinting at a potential rise towards a new all-time high, fresh analysis from TradingView indicates a possibility for the price to drop further to around $0.43 before staging another significant rally.
Resistance Challenges and Market Stabilization
Weekly analysis of Cardano’s price action reveals a strong resistance level at $1.2046. This resistance comes in the aftermath of a dramatic 205% surge from $0.4322 in late October to $1.32 by the end of November.
Amidst this impressive surge, Cardano set some substantial lows, which now act as critical support points. The rally pushed Cardano into the overbought territory on the Relative Strength Index (RSI), peaking at 82.87 before easing into a period of consolidation where buying pressure is stabilizing.
Current market activity suggests investors are speculating on Cardano’s next move, with significant buying volumes noted in recent trades.
Potential for Deep Price Correction
While the overall long-term perspective remains positive, analysts have identified the potential for a significant price correction in the short term. If such a correction occurs, Cardano could revisit some key support levels. An important level to note is $0.7683, which has been vital in recent price reactions.
Beyond this, $0.4322 serves as the ultimate support for maintaining a bullish outlook. Holding above this line is crucial for sustaining upward momentum. A fall below it could signal further declines and shift the market sentiment to bearish. Additional supports are at $0.3166 and $0.2427, levels from the previous bear market that analysts believe are unlikely to be breached even if the downturn persists.
Despite the potential correction, Cardano’s latest market performance and buyer behavior suggest a favorable long-term future. Currently, ADA trades at $0.912, having risen by 2% over the past 24 hours. Should ADA surpass the $1.2046 resistance, it could be on track to challenge its all-time high of $3.09 and perhaps set new records in this market cycle.
Image credit: Created with DALL.E, chart sourced from TradingView.com
