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Cardano (ADA) faced a 23% retrace from its local highs yesterday after a volatile day where many altcoins stalled. Despite the correction, ADA has been one of the best-performing altcoins since November 5th, demonstrating its resilience amidst market fluctuations. Investors are optimistic that Cardano will continue to outperform as the broader crypto market gains momentum.
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Top analyst Ali Martinez shared his technical analysis on X, highlighting the striking similarities between ADA’s current price chart and its 2020 performance. This year was a bullish phase for altcoins. According to Martinez, this similarity suggests that Cardano may be gearing up for another big rally. However, the coming weeks will be critical in confirming this trajectory, especially as Bitcoin continues to lead the market with strong upward momentum.
The interaction between Bitcoin performance and altcoin activity will be pivotal in shaping ADA price action. If Bitcoin continues its bullish cycle, altcoins like Cardano will likely “wake up” and follow suit. For ADA, a breakback above a major support level and towards recent highs is essential to maintain investor confidence and set the stage for a potential breakout as the market evolves. .
Cardano rally could continue
Cardano has had an incredible performance since November 5th, surging over 300% in less than a month. This impressive rise has caught the attention of investors and analysts, making ADA one of the standout performers in the altcoin market. However, the recent sell-off has raised concerns about the possibility of an even deeper correction, making many investors nervous.
Analyst and investor Ali Martinez recently shared his optimism about ADA's trajectory via X. According to Martinez, Cardano’s current price action mirrors its behavior in 2020, which preceded the massive bull market.
Cardano after the 2020 bull phase | Source: Ali Martinez of X
Although Martinez acknowledged that the stock could fall to $0.76, he sees it as a buying opportunity and underlined his confidence by saying he plans to lock in profits between $4 and $6. His analysis suggests that the current pullback is not a signal of weakness, but rather a natural part of a larger bullish cycle for ADA.
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Despite the recent pullback, key indicators and positive market sentiment support the case for ADA's upward trajectory. Cardano’s solid performance over the past month highlights its resilience, and many investors remain optimistic about its long-term potential. As the cryptocurrency market evolves, ADA's ability to hold key support levels and regain momentum will be critical in determining its next move.
Maintaining prices above key levels
Cardano (ADA) is trading at $1.01 after experiencing a 20% plunge yesterday. Despite this significant pullback, ADA has shown resilience and held firm above the key support level at $0.87. This level has proven to be a strong foundation for ADA's price action, suggesting that the asset is well positioned for further upward momentum.
Demand for ADA testing exceeds key levels | Source: ADAUSDT chart on TradingView
For ADA to continue its bullish trajectory, it will need to sustain above $0.90 in the coming days and solidify investor confidence. However, the next important milestone lies at the $1.25 resistance level. Crossing this threshold is critical for ADA as it signals renewed buying interest and the potential for continued appreciation.
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If ADA manages to sustain above $0.90 and breaks through the $1.25 mark, the price will be poised for a significant move higher. Such a move could attract more investors and further solidify ADA’s position as a top-performing altcoin. With the broader crypto market showing signs of strength, the next few weeks will be critical for ADA as it recovers from recent volatility and pushes toward new highs.
Featured image from Dall-E, chart from TradingView
