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Cardano (ADA) has seen significant volatility in recent weeks, attracting attention from investors and analysts. After reaching a local high of $1.15 on November 23, the price retreated significantly and recently failed to regain this key level. The inability to break above $1.15 has raised the question of whether ADA’s bullish momentum can sustain its recent uptrend.
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Prominent analyst and investor Ali Martinez spoke out, highlighting the potential for a 20% correction if Cardano loses critical demand areas. His analysis suggests that ADA’s current consolidation phase could either provide the basis for another rally or lead to further decline if key support levels fail to hold.
The next few days will be crucial for Cardano as price action will determine whether it can surpass yearly highs or retreat to lower levels for consolidation. Investors are closely watching ADA’s ability to hold crucial support zones, as their loss could signal a deeper retracement.
Conversely, a decisive move above $1.15 could reignite bullish optimism, paving the way for further gains. Cardano remains at a critical juncture, with risks and opportunities determining the market outlook.
Cardano loses strength
Cardano (ADA) price action has displayed slowing momentum as it struggles to maintain its upward trajectory. After failing to decisively breach the key resistance level of $1.15, ADA’s bullish momentum appears to be fading. Analysts are now wondering if Cardano can maintain its recent rally or if it is primed for a deeper correction.
Analyst Ali Martinez has shared detailed technical analysis on X, highlighting key levels that could dictate where ADA moves next. According to Martinez, a close below $1.10 would signal a potential trend change, raising investor concerns.
Additionally, he notes that a decline below $1.03 would confirm a bearish breakout, potentially pushing the price down to $0.88. Martinez’s analysis highlights the importance of supply and demand zones, suggesting that these levels could trigger strong price reactions in either direction.
Despite the bearish outlook, optimism remains. Cardano could recover and potentially reach new highs if the broader cryptocurrency market resumes its uptrend. However, any rise may not have the strong momentum seen earlier in the rally.
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Cardano remains at a critical juncture, with its price hovering near key support levels. The next few days will determine whether ADA can regain its bullish position or succumb to increased selling pressure.
Supporting ADA testing at a crucial level of demand
Cardano is currently trading at $1.08 after failing to maintain its recent bullish momentum above the previous high of $1.15. Although it briefly reached a new local high of $1.19, the price was unable to maintain this level, falling below the $1.15 threshold – a key demand area that now acts as resistance. This inability to sustain above previous highs raises concerns about the strength of ADA’s uptrend.
The $1.15 level is crucial for Cardano’s near-term price action. If ADA manages to reclaim this level and establish it as strong support, it could reinvigorate bullish sentiment and potentially pave the way for further gains. However, failure to do so increases the risk of a deeper correction, as current price suggests a lack of sustained buying pressure.
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Market participants are closely monitoring ADA’s price behavior around this critical zone. A sustained move above $1.15 could signal renewed demand and trigger another attempt at a push towards $1.20 and beyond. Conversely, continued weakness at current levels could lead to further declines, with ADA testing weaker supports.
Featured image of Dall-E, chart by TradingView
