As an analyst with over two decades of market experience under my belt, I’ve seen my fair share of bullish and bearish trends. The current state of Cardano presents an interesting scenario for me. After the rejection at the $1.3 resistance level, it’s natural to feel a sense of unease, but as they say, every fall brings us closer to a rise.

After facing strong selling forces, Cardano experienced a steep drop-off following a clear refusal at the $1.3 price ceiling.

Yet, the price has hit an important floor, hinting at a possible period of stabilization favorable to buyers in the short term.

Technical Analysis

By Shayan

The Daily Chart

Recently, Cardano has struggled to surpass the significant $1.3 barrier because of increased selling activity. This surge in selling is primarily being fueled by investors taking advantage of the distribution stage and placing short trades.

As I observed, the rejection I experienced triggered a downturn, and the price dipped significantly, eventually finding stability at the pivotal $0.8 mark. Interestingly, a bullish resurgence had already manifested at this critical level.

In simpler terms, the price lying between $0.8 and $1.3 is a crucial area of stability, where buyers are expected to vigorously protect the $0.8 mark.

A bullish retracement phase toward the $1.3 mark is anticipated over the mid-term.

The 4-Hour Chart

On the 4-hour chart, a noticeable decline in price occurred due to increased selling pressure around the $1.3 level.

This adjustment follows the usual pattern of a thriving bullish run, providing opportunities for profits and market balance. Currently, Cardano’s price resides within a strong support zone, which is demarcated by the 0.5 ($0.8) – 0.618 ($0.7) Fibonacci retracement levels.

In this region, we anticipate a robust defensive stance that should halt any further drops. It seems plausible that Cardano will experience a bullish recovery and stabilization period aiming for the $1.3 mark in the short term. Given the sturdy foundation of support, it may not be long before Cardano resumes its upward trend, bolstering optimistic expectations.

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2024-12-23 14:38