Possible Deep Correction Could Push Cardano Price To $0.43, Here’s How
Cardano Price Trend Continues to stall below the $1 mark Corrections in view of the past 7 days. This correction affected the entire cryptocurrency industry, with Cardano once again falling below the $1 mark by 18% in December.
Although broader trends suggest Possible changes in the weekly time frame Towards new all-time highs (ATH), Recent technical analysis TradingView opens the possibility of a continued correction towards $0.43 before another strong rise.
Current price action highlights resistance and cooling-off period
According to technical analysis Cardano (ADA) Price Trend On the weekly candlestick time frame, the cryptocurrency encountered significant resistance near the $1.2046 mark. This resistance emerged after Cardano surges 205% It increased from $0.4322 at the end of October to $1.32 at the end of November.
Related reading
Interestingly, during this significant price surge, Cardano formed significant lows that acted as support for the price. Furthermore, Cardano’s rally eventually entered the overbought zone on the Relative Strength Index (RSI) indicator. The rally in Cardano price eventually peaked at RSI 82.87, but has since fallen back into a cooling off/correction period, with buying pressure consolidating at the time of writing.
Cardano’s consolidation opens up prospects for its next direction, with heavy buying observed in recent sessions.
A deep correction could test key support at $0.43
While the long-term outlook remains bullish, the analysis highlights the scenario of a deep correction that could lead to further declines in Cardano price in the short term. With this in mind, analysts note that ADA may revisit support levels if a deeper correction occurs. The first key level at $0.7683 has proven its importance as a reaction area to the recent price action.
Related reading
Below this level, $0.4322 serves as the final support for the current bullish leg. This means that ADA must remain above the $0.43 support to maintain a bullish trajectory. Failure to hold above $0.43 at this point could lead to further price declines and turn into a bearish outlook.
Analysts also identify $0.3166 and $0.2427 as major support levels. These levels were Cardano’s lowest levels of support during the last bear market and are considered unlikely to be breached in the event of a prolonged decline.
Despite the possibility of a deep correction, Cardano’s Recent market behavior and buying trends suggest one Long-term prospects are promising. At the time of writing, ADA is trading at $0.912, up 2% in the past 24 hours. Once it clears the current resistance at $1.2046, ADA is well-positioned to challenge its all-time high of $3.09 and potentially set new highs in the current cycle.
Featured image created using Dall.E, chart from Tradingview.com
