Cardano Could Be Heading For A 20% Correction – Technical Data Signals Bearish Price Structure
Cardano (ADA) has seen significant volatility in recent weeks, catching the attention of investors and analysts. After hitting a local high of $1.15 on November 23, the price retraced sharply and has recently failed to regain this key level. The failure to break above $1.15 raises questions about whether ADA’s bullish momentum can sustain the recent uptrend.
Related reading
Top analyst and investor Ali Martinez also weighed in, highlighting that a 20% retracement could occur if Cardano loses key demand zones. His analysis suggests that ADA’s current consolidation phase could form the basis for another rally or lead to further declines if key support levels fail to hold.
The next few days will be crucial for Cardano as its price action will determine whether it can break out of its yearly highs or fall back to consolidate at lower levels. Investors pay close attention to ADA’s ability to hold key support areasas losing them could signal a deeper pullback.
Conversely, a decisive move above $1.15 could reignite bullish optimism and set the stage for further gains. Cardano remains at a critical juncture, with risks and opportunities coming together to shape the market outlook.
Cardano loses power
Cardano (ADA) price action is showing weak momentum as it struggles to sustain its upward trajectory. ADA’s bullish momentum appears to be fading after failing to decisively break above key resistance at $1.15. Analysts are now questioning whether Cardano can sustain its recent gains or is poised for a deeper correction.
Analyst Ari Martinez Shared detailed technical analysis on Xhighlighting key levels that may determine ADA’s next steps. Martinez said a close below $1.10 would signal a potential trend shift, causing investor concern.
Furthermore, he noted that a break below $1.03 would confirm a bearish breakout that could push the price down to $0.88. Martinez’s analysis highlights the importance of supply and demand zones, suggesting that these levels can trigger sharp price reactions in either direction.
Despite the pessimistic outlook, there is room for optimism. If the broader cryptocurrency market resumes its bullish trend, Cardano could recover and potentially push to new highs. However, any gains are likely to lack the momentum seen in earlier rallies.
Related reading
Cardano remains at a critical juncture, with its price hovering near key support levels. The next few days will determine whether ADA is able to regain its bullish footing or succumb to increasing selling pressure.
Critical requirement level ADA testing support
Cardano failed to sustain the recent bullish momentum above the previous high of $1.15 and is currently trading at $1.08. Despite briefly touching a new local high of $1.19, the price was unable to sustain this level and fell below the $1.15 threshold (a key demand area that now acts as resistance). The inability to hold previous highs has raised concerns about the strength of ADA’s uptrend.
The $1.15 level will be crucial for Cardano’s recent price action. If ADA manages to reclaim this level and establish it as solid support, it could revive bullish sentiment and potentially pave the way for further gains. Failure to do so, however, increases the risk of further corrections as current prices suggest a lack of sustained buying pressure.
Related reading
Market participants are closely watching ADA’s price action in this key area. A sustained break above $1.15 could signal a revival in demand and spark another push toward $1.20 and above. Conversely, continued weakness at current levels could lead to further downside, with ADA testing lower support.
Featured image from Dall-E, chart from TradingView
