The Cardano price has been facing challenges staying above the $1 mark as corrections have been seen in the past week. This correction, which affected the entire cryptocurrency industry, led to Cardano dropping below $1 once again on December 18th.
Despite the overall upward trend suggesting a possible move towards a new all-time high on a weekly timeframe, recent technical analysis on TradingView has indicated the potential for a continued correction towards $0.43 before another significant upward movement.
The current price movements have shown resistance around the $1.2046 mark, following Cardano’s impressive 205% surge from $0.4322 in late October to $1.32 in late November. This surge resulted in Cardano entering the overbought zone on the Relative Strength Index (RSI) indicator, peaking at 82.87 before retracing into a cooling period where buying pressure is consolidating.
While the long-term outlook remains positive, there is a possibility of a deep correction that could test critical support levels. The analyst points out that ADA may revisit support levels at $0.7683 and $0.4322, with the ultimate support at $0.43. Holding above $0.43 is crucial for maintaining a bullish trajectory, as failure to do so could lead to further price declines and a shift to a bearish outlook.
Despite the potential for a deep correction, recent market behavior and buying trends indicate a promising long-term outlook for Cardano. Currently trading at $0.912, ADA has shown a 2% increase in the past 24 hours. Once the resistance at $1.2046 is overcome, Cardano is well-positioned to challenge its all-time high of $3.09 and potentially establish new highs in the current cycle.
In conclusion, while Cardano may face short-term challenges, the overall outlook remains positive for the cryptocurrency. The key support levels and resistance points mentioned in the technical analysis provide valuable insights for investors and traders looking to navigate the volatile cryptocurrency market.