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Cardano’s price action has Continue to procrastinate below the $1 mark In light of the corrections in the past seven days. This correction, which played out across the entire cryptocurrency industry, saw Cardano fall below the $1 mark again at 18% in December.
Although the broader trend points to a Possible move on the weekly time frame Towards a new all-time high (ATH), Latest technical analysis TradingView should open up the possibility of a continued correction towards $0.43 before another strong upward move.
Current price action highlights resistance and cooling period
According to technical analysis of the stock Cardano (ADA) price action. On the weekly candlestick time frame, the cryptocurrency faced notable resistance around the $1.2046 level. This resistance appeared after that Cardano’s remarkable rise of 205% From $0.4322 in late October to $1.32 in late November.
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Interestingly, this notable price rise made Cardano form significant bottoms that act as support levels for the price. Furthermore, the rally ended with Cardano entering the overbought zone on the Relative Strength Index (RSI). The rally peaked when Cardano price peaked at 82.87 on the RSI, but has since retreated into a cooling/correction period as buying pressure was strengthening at the time of writing.
Cardano’s consolidation has opened up expectations about its next trend, with heavy buying volumes observed in recent trading sessions.
A deep correction may test the critical support at $0.43
While the long-term outlook remains bullish, the analysis highlights a deep correction scenario that could see Cardano’s price fall further in the short term. With this in mind, the analyst points out support levels that ADA may return in the event of a deeper correction. The first major level at $0.7683 has already proven its importance, acting as a retracement zone in recent price action.
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Below this level, $0.4322 represents the ultimate support for the current bullish leg. What this means is that ADA must remain above the $0.43 support level for the upward trajectory to remain valid. Failure to hold above $0.43 will likely lead to further price declines at this point and a change to a bearish outlook.
The analyst also identifies $0.3166 and $0.2427 as key supports. These levels are the lowest support level for Cardano during the previous bear market and are considered less likely to break out in the event of a long-term decline.
Despite the potential for a deep correction, Cardano Recent market behavior and buying trends I suggest a Promising long-term outlook. At the time of writing, ADA is trading at $0.912 and is up 2% in the last 24 hours. Once the current resistance at $1.2046 is cleared, ADA is well positioned to challenge its all-time high at $3.09 and possibly create new highs in the current session.
Featured image created with Dall.E, chart from Tradingview.com