Cardano Faces Possible 20% Correction Amid Weakening Bullish Momentum
Cardano (ADA) has experienced notable volatility recently, peaking at $1.15 on November 23 before retracing significantly. The failure to surpass this level raises concerns about the sustainability of ADA's bullish momentum.
Analyst Ali Martinez suggests a potential 20% correction if Cardano loses critical demand zones. He indicates that ADA’s current consolidation phase may either lead to another rally or result in further downside if key support levels do not hold.
The upcoming days are crucial for Cardano, as its price action will determine whether it can exceed yearly highs or retreat for consolidation. Investors are closely observing ADA’s ability to maintain essential support zones, as losing them could indicate a deeper retracement.
A decisive move above $1.15 could renew bullish sentiment and set the stage for further gains. Cardano is at a critical juncture, balancing both risk and opportunity in the market outlook.
Cardano Losing Strength
Cardano’s price action shows weakening momentum after failing to decisively break above the $1.15 resistance level. Analysts are questioning whether ADA can maintain its rally or face a deeper correction.
Ali Martinez shared a technical analysis highlighting key levels influencing ADA’s next move. A close below $1.10 would indicate a possible trend shift, raising investor concerns.
Martinez notes that a drop below $1.03 would confirm a bearish breakout, potentially driving the price down to $0.88. His analysis emphasizes the importance of supply and demand zones, which could trigger significant price reactions.
Despite the bearish outlook, optimism remains if Cardano can recover and push toward new highs, particularly if the broader cryptocurrency market resumes a bullish trend. However, any upward movement may lack the strong momentum seen earlier.
Cardano is at a critical point, with its price near key support levels. The coming days will reveal whether ADA can regain its bullish momentum or face increased selling pressure.
ADA Testing Support At Crucial Demand Level
Currently trading at $1.08, Cardano has struggled to maintain its bullish momentum following a peak of $1.19. It slipped below the $1.15 threshold, which now acts as resistance, raising concerns about the strength of its upward trend.
The $1.15 level is critical for Cardano’s near-term price action. If ADA reclaims this level as solid support, it could rejuvenate bullish sentiment and facilitate further gains. Failure to do so increases the risk of a deeper correction, indicating a lack of sustained buying pressure.
Market participants are monitoring ADA’s behavior around this critical zone. Sustained movement above $1.15 could signal renewed demand and attempts to reach $1.20 and beyond. Conversely, continued weakness may lead to further declines, testing lower supports.
Featured image from Dall-E, chart from TradingView