Cardano price action It still stopped below $1 According to the reforms in the last seven days. This correction, which took place across the entire crypto industry, caused Cardano to fall back below the $1 level on December 18th.
Although the broader trend shows a Possible move in weekly time frame to the new all-time high (ATH), Recent technical analysis On TradingView this opens up the possibility for a sustained correction towards $0.43 before another strong bullish move.
Current price movements highlight resistance and cooling period
According to the technical analysis of Cardano Price Action (ADA). In the weekly candlestick timeframe, this digital currency has encountered significant resistance around $1.2046. This resistance has emerged since then A significant 205% increase in Cardano From $0.4322 in late October to $1.32 in late November.
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Interestingly, this significant price increase caused Cardano to form 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). The rally peaked with Cardano price peaking at 82.87 on the RSI, but has since returned to a cooling/correction period where buying pressure is consolidating at the time of writing.
The Cardano merger has opened up the horizon for its next direction, with significant buying volume seen in recent trading sessions.
A deep correction could test the critical support at $0.43
While the long-term outlook is bullish, analysis suggests a scenario of a deep correction that could cause Cardano's price to fall further in the short-term. With this in mind, the analyst points to support levels that the ADA may revisit in the event of a deeper correction. The first key level at $0.7683 has already proved its importance and is acting as a resistance zone in recent price movements.
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Below this, $0.4322 is the final support for the current bullish leg. This means that ADA needs to hold above the $0.43 support level to remain a valid uptrend. Failure to hold above $0.43 is likely to result in further price declines at this stage and a change in the bearish outlook.
The analyst also identifies $0.3166 and $0.2427 as primary supports. These levels are Cardano's lowest support levels during the previous bear market and are less likely to be broken in the event of a prolonged decline.
Despite its deep modification potential, Cardano Recent market behaviors and buying trends Suggestion A Promising long-term outlook. At the time of writing, ADA is trading at $0.912, up 2% in the last 24 hours. Once the current resistance at $1.2046 is cleared, ADA is well positioned to challenge its $3.09 high and possibly make new highs in the current cycle.
Featured image created with Dall.E, chart from Tradingview.com
