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Cardano Could Be Heading For A 20% Correction Technical Data Signals Bearish Price Structure
Cardano (ADA) has seen significant volatility in recent weeks, capturing the attention of investors and analysts alike. After reaching a local high of $1.15 on November 23, the price retraced significantly and recently failed to reclaim this key level. The inability to break above $1.15 has raised questions about whether ADAs bullish momentum can sustain its recent uptrend. Related Reading: Dogecoin Ready To Hit $1 Price Struggles To Break Above Major Resistance Top analyst and investor Ali Martinez has weighed in, highlighting the potential for a 20% correction if Cardano loses critical demand zones. His analysis suggests that ADAs current consolidation phase could either serve as a foundation for another rally or lead to further downside if key support levels fail to hold. The coming days will be pivotal for Cardano, as its price action will determine whether it can break above yearly highs or retreat to lower levels for consolidation. Investors closely monitor ADAs ability to hold crucial support zones, as losing them could signal a deeper retracement. Conversely, a decisive move above $1.15 could renew bullish optimism, setting the stage for further gains. Cardano remains at a critical juncture, with both risk and opportunity shaping the market outlook. Cardano Losing Strength Cardanos (ADA) price action has displayed weakening momentum as it struggles to maintain its upward trajectory. After failing to break above the key $1.15 resistance level decisively, ADAs bullish momentum appears to be fading. Analysts are now questioning whether Cardano can sustain its recent rally or is poised for a deeper correction. Analyst Ali Martinez shared a detailed technical analysis on X, highlighting key levels that could dictate ADAs next move. According to Martinez, a close below $1.10 would signal a potential trend shift, raising investor concerns. Furthermore, he notes that a drop below $1.03 would confirm a bearish breakout, potentially driving the price down to $0.88. Martinezs analysis emphasizes the significance of supply and demand zones, suggesting that these levels could trigger sharp price reactions in either direction. Despite the bearish outlook, there is still room for optimism. Cardano could recover and potentially push toward new highs if the broader cryptocurrency market resumes its bullish trend. However, any upside may lack the strong momentum seen earlier in the rally. Related Reading: Dogecoin Consolidates Below Key Supply Level Analyst Expects Rally Soon Cardano remains at a critical juncture, with its price hovering near key support levels. The next few days will determine whether ADA can reclaim its bullish footing or succumb to increased selling pressure. ADA Testing Support At Crucial Demand Level Cardano is currently trading at $1.08 after failing to sustain its recent bullish momentum above the previous high of $1.15. Despite briefly reaching a new local high of $1.19, the price could not maintain this level, slipping below the $1.15 thresholda key demand zone that now acts as resistance. This inability to hold above previous highs raises concerns about the strength of ADAs upward trend. The $1.15 level is pivotal for Cardanos near-term price action. If ADA manages to reclaim this level and establish it as a solid 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 the current price suggests a lack of sustained buying pressure. Related Reading: Shiba Inu Could Increase 75% If It Holds Current Level Analyst Shares Price Target Market participants are closely monitoring ADAs price behavior around this critical zone. A sustained move above $1.15 could signal renewed demand and spark another attempt to push toward $1.20 and beyond. Conversely, continued weakness at current levels might lead to further downside, with ADA testing lower supports. Featured image from Dall-E, chart from TradingView
