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Cardano Price Action Has continued stuck below the $1 mark in light of the corrections of the last seven days. This correction, which played out across the crypto industry, saw Cardano fall back below the $1 mark 18% from December.
Although the broader trend suggests a possible movement in the weekly period towards a new all-time high (ATH), recent technical analysis on TradingView has opened up the possibility of a continued correction towards $0.43 before another strong bullish move.
Current Price Movements Highlight Resistance and Cooldown Period
According to the technical analysis of the Cardano (ADA) Price Action On the weekly candlestick time frame, the cryptocurrency has encountered notable resistance around the $1.2046 mark. This resistance arose after Cardano’s Remarkable 205% Rise from $0.4322 at the end of October to $1.32 at the end of November.
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Interestingly, this notable price surge caused Cardano to form significant lows that serve as support levels for the price. Furthermore, the rally ended with Cardano entering the overbought zone on the Relative Strength Index (RSI) indicator. The rally culminated with Cardano price reaching a high of 82.87 on the RSI, but has since retreated into a cooldown/correction period where buying pressure is consolidating at the time of writing.
Cardano’s consolidation has opened insights into its next direction, with substantial buying volumes seen in recent trading sessions.
Deep correction could test critical support at $0.43
While the long-term outlook remains bullish, the analysis highlights the scenario of a deep correction that could see Cardano price fall further in the short term. In this sense, the analyst points to support levels that ADA could revisit in the event of a deeper correction. The first key level at $0.7683 has already proven its importance, acting as a reactionary zone in the recent price movements.
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Below this, $0.4322 stands as the definitive support for the current bullish leg. What this means is that ADA has to stay above the $0.43 support level for a bullish trajectory to remain valid. Failure to sustain above $0.43 will likely lead to further price declines at this point and a shift towards a bearish outlook.
The analyst also identifies $0.3166 and $0.2427 as major supports. These levels are Cardano’s lowest support during the previous bear market and are considered less likely to be broken in the event of a long-term decline.
Despite the potential for a deep correction, Cardano Recent market behavior and purchasing trends. suggest a promising long-term prospects. At the time of writing, ADA is trading at $0.912 and is up 2% in the last 24 hours. Once the current resistance of $1.2046 is broken, ADA will be well positioned to challenge its all-time high of $3.09 and possibly set new highs in the current cycle.
Featured image created with Dall.E, chart from Tradingview.com
