Cardano price action Continued to stay below the $1 mark In light of the reforms in the last seven days. This correction, which played out across the entire crypto industry, saw Cardano break below the $1 mark again on December 18%.
Although the general trend suggests that a Possible move on weekly time frame Towards a new all-time high (ATH), Latest technical analysis The possibility of a sustained correction towards $0.43 has been opened before another strong upward move on TradingView.
Current value waves highlight the resistance and cooling period
According to the technical analysis of Cardano (ADA) price action On the weekly candlestick timeframe, the cryptocurrency has faced significant resistance around the $1.2046 mark. After this protest has come out Cardano’s remarkable 205% increase From $0.4322 in late October to $1.32 in late November.
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Interestingly, this spectacular price rally saw Cardano make significant lows that act as support levels for the price. Furthermore, the rally ended with Cardano entering the overbought zone on the Relative Strength Index (RSI) indicator. Cardano price peaked at 82.87 on the rally RSI, but has since returned to a cooling / corrective period where buying pressure is strengthening at the time of writing.
Cardano’s integration has opened up perspectives as to its next direction, which has seen a significant amount of buying in recent trading sessions.
A deeper correction could test critical support at $0.43
While the long-term outlook remains bullish, the analysis highlights a deep correction scenario that could send Cardano’s price further down in the short term. With this in mind, the analyst points to the support levels that the ADA could go again in the event of a deep reform. The first key level at $0.7683 has already proven its importance, acting as a reactionary zone in recent price movements.
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Below this, $0.4322 stands as final support for the current bullish leg. This means that ADA has to hold above the $0.43 support level for the bullish trajectory to remain valid. A failure to hold above $0.43 is currently likely to cascade into further price declines and a change to the bearish outlook.
The analyst also identifies $0.3166 and $0.2427 as primary support. These levels are Cardano’s lowest support during the previous bear market and are considered the least likely to be breached in the event of a prolonged bear market.
Despite the possibility of a deep improvement, of Cardano Recent market behavior and buying trends suggestion The long-term perspective promises. At the time of writing, ADA is trading at $0.912 and has gained 2% in the last 24 hours. Once it clears the current resistance at $1.2046, ADA is well positioned to challenge its $3.09 all-time high and possibly set new highs in the current cycle.
Featured image created with Dall.E, chart from Tradingview.com
