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The Cardano price action has continued to stall below the $1 markin light of corrections in the past 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 broader trend suggests a possible move on the weekly timeframetowards a new all-time high (ATH), recent technical analysison TradingView has opened up the possibility for a continued correction towards $0.43 before another strong upward move. Current Price Movements Highlight Resistance And Cooling Period
According to technical analysis of the Cardano (ADA) price actionon the weekly candlestick timeframe, the cryptocurrency has encountered notable resistance around the $1.2046 mark. This resistance has emerged after Cardano’s remarkable 205% surgefrom $0.4322 in late October to $1.32 in late November. Related Reading XRP Price Prediction: Wave 2 And 5 Targets Put XRP At $7 And $13 1 day ago
Interestingly, this remarkable price surge saw Cardano form significant lows that serve as support levels for the price. Furthermore, the rally ended up with Cardano entering the overbought zone on the Relative Strength Index (RSI) indicator. The rally culminated in the Cardano price peaking at 82.87 on the RSI, but it has since retraced into a cooling/corrective period where buying pressure is consolidating at the time of writing.
Cardano’s consolidation has opened up outlooks as to its next direction, with substantial buying volumes observed in recent trading sessions. Deep Correction Could Test Critical Support At $0.43
While the long-term outlook remains bullish, the analysis highlights the scenario of a deep correction that could send the Cardano price falling further in the short term. With this in mind, the analyst points to support levels that ADA may revisit in the event of a deeper correction. The first key level at $0.7683 has already proven its significance, acting as a reactionary zone in recent price movements. Related Reading Is Altcoin Season Here Already? VanEck Answers As Bitcoin Price Struggles Below $100,000 1 day ago
Below this, $0.4322 stands as the ultimate support for the current bullish leg. What this means is that ADA has to hold above the $0.43 support level in order for a bullish trajectory to remain valid. Failure to hold above $0.43 is likely to cascade into more price declines at this point and a change into bearish outlook.
The analyst also identifies $0.3166 and $0.2427 as primary supports. These levels are Cardano’s lowest support during the previous bear market and are considered less likely to be breached in case of a longer-term decline.
Despite the potential for a deep correction, Cardano’s recent market behavior and buying trendssuggest a promising long-term outlook. At the time of writing, ADA is trading at $0.912 and has increased by 2% in the past 24 hours. Once the current resistance at $1.2046 is cleared, ADA is well-positioned to challenge its $3.09 all-time high and possibly establish new highs in the current cycle. ADA price still below $1 | Source: ADAUSDT on Tradingview.com Featured image created with Dall.E, chart from Tradingview.com