Cardano Price Analysis: What Is Next for ADA After 7% Daily Drop to Below $1?

As a seasoned crypto investor with over a decade of market experience, I’ve witnessed my fair share of bull runs and bear markets. The recent surge in Cardano (ADA) has been nothing short of exhilarating, with ADA reclaiming its yearly high of $0.8 and charging towards the crucial $1.3 resistance zone.

As a crypto investor, I’ve been thrilled to witness Cardano’s robust surge lately. It has not only recovered its annual peak at $0.8 but also pushed forward towards the significant resistance level of $1.3. This progress is quite encouraging!

As a crypto investor, I anticipate that we’re about to experience a period of consolidation, where the price may bounce around within the span of $0.8 to $1.3.

Technical Analysis

By Shayan

The Weekly Chart

Lately, Cardano (ADA) has seen an increase in demand, propelling it up from the important $0.3 support point. This bullish energy allowed ADA to regain its previous annual peak of $0.8 and challenge the notable resistance at $1.3. Yet, the $1.3 barrier remains a pivotal hurdle, as sellers have been asserting their power, resulting in a recent reversal.

In about half a year, it’s expected that ADA may experience a pullback period, possibly falling back towards the previously breached $0.8 mark. If ADA manages to bounce back from this level, it could pave the way for another surge, with sights set on the significant $2 resistance area, suggesting the continuation of a prolonged bullish momentum.

The 4-Hour Chart

On a 4-hour timeframe, Cardano’s bullish push appears to have weakened upon hitting the $1.3 mark, indicating substantial sell-offs that caused increased market volatility and price movement in a horizontal pattern near this key resistance level.

In this consolidation period, a bearish reversal pattern known as head and shoulders has developed. The price is currently hovering close to the neckline of this pattern. If there’s a confirmed breakout below this neckline, it could initiate a brief drop in value, possibly causing the asset to retrace to the Fibonacci levels between 0.5 ($0.82) and 0.618 ($0.7).

This corrective move could allow buyers to re-enter the market, potentially fueling the next rally aimed at reclaiming the $1.3 resistance and setting the stage for further upward momentum.

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2024-12-19 17:33