Cardano's price action is on it it continued below the $1 mark due to 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 wider movement suggests a possible shift on the weekly schedule towards a new full-time (ATH) level, recent technical analysis on TradingView has opened an opportunity for a continued correction towards $0.43 before another strong move up.
Current price trends emphasize resistance and cooling time
According to the technical analysis of the Cardano Price Action (ADA). on the weekly candlestick chart, the cryptocurrency has strongly resisted around the $1.2046 mark. This struggle has subsequently emerged Cardano's incredible 205% increase from $0.4322 at the end of October to $1.32 at the end of November.
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Interestingly, this dramatic price increase saw Cardano form lows which are support levels for the price. Furthermore, the rally ended with Cardano entering the overbought zone on the Relative Strength Index (RSI) indicator. The rally ended with the price of Cardano peaking at 82.87 on the RSI, but has since gone back into a cooling/correction period where buying pressure is consolidating at the time of writing.
Cardano's consolidation has opened up perspectives regarding the next path, with substantial buying volumes seen in recent trading sessions.
A deep correction could prove critical support at $0.43
While the long-term outlook remains optimistic, the analysis indicates a deep correction scenario that could further depress Cardano's price in the short term. With this in mind, the analyst identifies support levels that ADA may revisit if a deeper correction is made. The first key level at $0.7683 has already proven its importance, acting as a reaction zone in recent price movements.
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Below this, $0.4322 stands as the last support for the current bullish leg. Yes this means that ADA must hold above the $0.43 support level for a bullish trend to remain valid. Failure to hold above $0.43 is likely to result in further price declines at this level and a change in bearish outlook.
The analysis also points to $0.3166 and $0.2427 as key support. These levels are Cardano's lowest support in the previous bear market and are considered less likely to be broken in case of a long-term decline.
Despite the potential for deep correction, Cardano's recent market behavior and buying trends praise a promising long-term perspective. At the time of writing, ADA is trading at $0.912 and has risen 2% in the past 24 hours. Once the current resistance at $1.2046 is cleared, ADA is well positioned to challenge its all-time high of $3.09 and possibly establish new highs in the current cycle.
Featured image created by Dall.E, chart from Tradingview.com
