ADA Needs to Maintain This Level to Avoid Drop to $0.5: Cardano Price Analysis

As an analyst with over two decades of experience in the financial markets, I have seen my fair share of bull and bear runs. The current performance of Cardano (ADA) is no exception to this pattern.

Among cryptocurrencies, Cardano tends to mirror the price movements of Bitcoin quite closely. At present, just like Bitcoin, it’s undergoing a comparable price correction.

By Edris Derakhshi (TradingRage)

The USDT Paired Chart

As an analyst, I’ve observed an upward surge in the USDT-paired chart for the asset, commencing around early November. This rally propelled it above the 200-day moving average. Subsequently, numerous resistance levels have been breached, however, the $1.2 mark has thwarted the asset’s advance on more than one occasion.

The market hasn’t been able to push past $1.2, which has caused it to correct downwards towards the $0.75 support region. This correction has so far kept the decline from becoming more severe. If the $0.75 level manages to hold, it might not be long before ADA surpasses the $1.2 threshold again. However, if the $0.75 area weakens, there could be a fall towards the 200-day moving average, approximately at the $0.5 mark.

The BTC Paired Chart

From my analysis, I’ve observed that during the latest cryptocurrency surge, Cardano (ADA) has surpassed Bitcoin (BTC). However, when considering a broader timescale, ADA is depreciating relative to BTC. The 1,000 SAT support level appears to be breaking downwards, suggesting that the ADA/BTC chart may trend lower and approach the 200-day moving average at approximately 700 SAT.

Therefore, as the chart suggests, it is probable that BTC will outperform ADA in the coming weeks.

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2024-12-26 17:46