Cardano Could Be Heading For A 20% Correction – Technical Data Signals Bearish Price Structure

Cardano (ADA) has seen significant volatility in recent weeks, capturing the attention of investors and analysts alike. After hitting a local high of $1.15 on November 23, the price has retreated significantly and recently failed to regain this key level. The inability to break above $1.15 has raised questions about whether ADA’s bullish momentum can sustain its recent uptrend.

Related reading

Lead analyst and investor Ali Martinez commented, highlighting the potential for a 20% correction if Cardano loses critical demand areas. His analysis suggests that ADA’s current consolidation phase could serve as the basis for another rally or lead to a further decline if key support levels fail to hold.

The coming days will be pivotal for Cardano, as price action will determine whether it can break above its yearly highs or pull back to lower levels to consolidate. Investors are closely monitoring ADA’s ability to hold important support areas, as missing them could indicate a deeper bounce.

Conversely, a decisive move above $1.15 could renew bullish optimism, paving the way for further gains. Cardano is still at a critical juncture, where risks and opportunities shape market expectations.

Cardano is losing power

Cardano (ADA) price action has shown weak momentum as it struggles to maintain its upward trajectory. After failing to break the key $1.15 resistance level decisively, ADA’s bullish momentum appears to be fading. Analysts are now wondering whether Cardano will be able to sustain its recent rally or if it is preparing for a deeper correction.

Analyst Ali Martinez Share detailed technical analysis on Xhighlighting key levels that could dictate ADA’s next step. According to Martinez, a close below $1.10 would signal a potential shift in trend, raising concerns among investors.

Moreover, it indicates that a drop below $1.03 would confirm a downside breakout, which could take the price down to $0.88. Martinez’s analysis emphasizes the importance of supply and demand zones, suggesting that these levels can lead to sharp price reactions in either direction.

Despite the bearish outlook, there is still room for optimism. Cardano could recover and possibly head towards new highs if the broader cryptocurrency market resumes its uptrend. However, any uptrend may lack the strong momentum seen earlier in the rally.

Related reading

Cardano is still at a critical juncture, with its price hovering near key support levels. The next few days will determine whether ADA can regain its bullish position or succumb to increasing selling pressure.

Support ADA testing at critical demand level

Cardano is currently trading at $1.08 after failing to maintain its recent bullish momentum above the previous high of $1.15. Despite briefly reaching a new local high at $1.19, the price was unable to maintain this level, falling below the $1.15 threshold – a key demand zone that is now acting as resistance. The inability to hold above previous highs raises concerns about the strength of ADA’s upward trend.

The $1.15 level is pivotal to Cardano’s near-term price movement. If ADA can reclaim this level and consolidate as a strong support, it could reinvigorate bullish sentiment and possibly pave the way for further gains. However, failure to do so increases the risk of a deeper correction, as the current price indicates no sustained buying pressure.

Related reading

Market participants are closely monitoring the behavior of ADA prices around this critical area. A sustained move above $1.15 could signal renewed demand and spark another attempt to push towards $1.20 and beyond. Conversely, continued weakness at current levels could lead to further downside, with ADA testing lower support levels.

Featured image by Dall-E, chart from TradingView