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Cardano (ADA) has seen significant volatility in recent weeks, drawing the attention of both investors and analysts. After reaching a local high of $1.15 on November 23, the price has fallen significantly and has recently failed to regain this important level. The failure to break out of $1.15 raises questions about whether ADA's bullish momentum can sustain its recent uptrend.
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Top analyst and investor Ali Martinez also weighed in, highlighting the possibility of a 20% correction if Cardano loses a key demand zone. According to his analysis, ADA's current consolidation phase could form the basis for a new rally or lead to further declines if key support levels fail to hold.
The next few days will be crucial for Cardano. This will determine whether Cardano’s price trend can break through to year-to-date highs or retreat to lower levels towards consolidation. Investors are closely monitoring whether ADA can maintain its key support zone. This is because losing the support zone could indicate a deeper retrace.
Conversely, a decisive move above $1.15 could reignite bullish optimism and set the stage for further upside. Cardano remains at a critical juncture, with both risks and opportunities shaping the market outlook.
Cardano loses power
Cardano (ADA) price trend is losing momentum as it struggles to maintain its upward trajectory. ADA’s bullish momentum appears to be fading after failing to decisively break out of the key resistance level at $1.15. Analysts are now questioning whether Cardano can maintain its recent gains or is bracing for a deeper correction.
Analyst Ali Martinez shared detailed technical analysis on X, highlighting key levels that could determine ADA's next move. Martinez said a close below $1.10 could signal a trend reversal, raising investor concerns.
Cardano could soon face a correction | Source: Ali Martinez of X
Moreover, a decline below $1.03 could confirm a bearish breakout and send the price down to $0.88, he notes. Martinez's analysis emphasizes the importance of supply and demand zones, suggesting that these levels can cause sharp price reactions in either direction.
Despite the bearish outlook, there is still room for optimism. If the broader crypto market resumes its bullish trend, Cardano could recover and rise towards new highs. However, any rally may lack the strong momentum seen earlier in the rally.
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Cardano remains at a critical juncture, with price hovering around key support levels. The next few days will determine whether ADA is able to regain its bullish footing or succumbs to increasing selling pressure.
Support for ADA testing at critical demand levels
Cardano is currently trading at $1.08 after failing to sustain recent bullish momentum above its previous high of $1.15. Although it briefly reached a local high of $1.19, the price was unable to sustain this level and fell below the key demand zone of $1.15, which is currently acting as resistance. This inability to sustain historic highs raises concerns about the strength of ADA's upward trend.
ADA testing liquidity between $1.15 and $1.10 | Source: ADAUSDT chart on TradingView
The $1.15 level is crucial for Cardano’s short-term price action. If ADA regains this level and establishes itself as solid support, it could reinvigorate bullish sentiment and pave the way for further upside. However, failure to do so increases the risk of an even deeper correction, as current prices suggest a lack of sustained buying pressure.
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Market participants are closely monitoring ADA price movements around this important zone. A sustained move above $1.15 could signal a resurgence in demand and trigger another attempt to rally above $1.20. Conversely, continued weakness at current levels could lead to further downside as ADA tests lower support.
Featured image from Dall-E, chart from TradingView
