Cardano Price Faces Potential Deep Correction Towards $0.43 Support
The Cardano price action has continued to stall below the $1 mark due to corrections over the past week, with a notable drop below $1 occurring on December 18%. This correction is part of a broader trend affecting the crypto industry.
While the overall trend hints at a potential move towards a new all-time high (ATH) on the weekly timeframe, technical analysis suggests a possibility for further correction towards $0.43 before a strong upward movement.
Current Price Movements Highlight Resistance And Cooling Period
Technical analysis indicates that Cardano (ADA) faces significant resistance around $1.2046 after a 205% surge from $0.4322 in late October to $1.32 in late November. The surge led to significant lows that now serve as support levels, with the price reaching an RSI peak of 82.87 before entering a corrective phase characterized by consolidating buying pressure.
This consolidation phase raises questions about ADA's next direction, especially as substantial buying volumes have been noted in recent trading sessions.
Deep Correction Could Test Critical Support At $0.43
Despite a bullish long-term outlook, analysts highlight the risk of a deeper correction that could push Cardano lower in the short term. Key support levels include $0.7683, which has already shown significance, and $0.4322, the ultimate support for maintaining a bullish trajectory. If ADA fails to hold above $0.43, it may lead to further declines and a shift to a bearish outlook.
Additional primary support levels are identified at $0.3166 and $0.2427, which represent Cardano's lowest points during the previous bear market and are deemed less likely to be breached in a prolonged decline.
Despite potential for a deep correction, recent market behavior and buying trends indicate a promising long-term outlook for Cardano. Currently, ADA trades at $0.912, having increased by 2% in the last 24 hours. Clearing the resistance at $1.2046 positions ADA to challenge its $3.09 all-time high and possibly set new highs in this cycle.
