The Cardano price action has continued to stall below the $1 mark in light of corrections in the past seven days. This correction, which played out across the entire crypto industry, saw Cardano break below the $1 mark again on December 18%. 

Although the broader trend suggests a possible move on the weekly timeframe towards a new all-time high (ATH), recent technical analysis on TradingView has opened up the possibility for a continued correction towards $0.43 before another strong upward move.

Current Price Movements Highlight Resistance And Cooling Period

According to technical analysis of the Cardano (ADA) price action on the weekly candlestick timeframe, the cryptocurrency has encountered notable resistance around the $1.2046 mark. This resistance has emerged after Cardano’s remarkable 205% surge from $0.4322 in late October to $1.32 in late November. 

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Interestingly, this remarkable price surge saw Cardano form significant lows that serve as support levels for the price. Furthermore, the rally ended up with Cardano entering the overbought zone on the Relative Strength Index (RSI) indicator. The rally culminated in the Cardano price peaking at 82.87 on the RSI, but it has since retraced into a cooling/corrective period where buying pressure is consolidating at the time of writing.

Cardano’s consolidation has opened up outlooks as to its next direction, with substantial buying volumes observed in recent trading sessions.

Deep Correction Could Test Critical Support At $0.43

While the long-term outlook remains bullish, the analysis highlights the scenario of a deep correction that could send the Cardano price falling further in the short term. With this in mind, the analyst points to support levels that ADA may revisit in the event of a deeper correction. The first key level at $0.7683 has already proven its significance, acting as a reactionary zone in recent price movements.

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Below this, $0.4322 stands as the ultimate support for the current bullish leg. What this means is that ADA has to hold above the $0.43 support level in order for a bullish trajectory to remain valid. Failure to hold above $0.43 is likely to cascade into more price declines at this point and a change into bearish outlook.

The analyst also identifies $0.3166 and $0.2427 as primary supports. These levels are Cardano’s lowest support during the previous bear market and are considered less likely to be breached in case of a longer-term decline.

Despite the potential for a deep correction, Cardano’s recent market behavior and buying trends suggest a promising long-term outlook. At the time of writing, ADA is trading at $0.912 and has increased by 2% in the past 24 hours. Once the current resistance at $1.2046 is cleared, ADA is well-positioned to challenge its $3.09 all-time high and possibly establish new highs in the current cycle.

Featured image created with Dall.E, chart from Tradingview.com

Cardano price, a proof-of-stake cryptocurrency, has recently witnessed a significant price increase amid a broader market rally. The altcoin’s upward momentum reflects heightened investor interest, paralleling gains in other cryptocurrencies. With December promising further potential, ADA enthusiasts are speculating whether its price could revisit all-time highs, mirroring its impressive 2021 rally

Is Cardano Price to Reclaim Its ATH From the 2021 Bull Run?

Cardano price is regaining traction as bullish sentiment returns to the cryptocurrency market. The top altcoin shows signs of recovery, with its price reclaiming $3.10 and sparking optimism among investors. The market now watches closely as ADA aims to surpass its previous cycle’s all-time high.

Cardano’s all-time high was $3.10 on September 2, 2021. At the time of reporting, the cryptocurrency is still 63.71% below this peak. However, recent price movements suggest a growing potential for a breakout.

Market analysts attribute the renewed bullish momentum to the broader crypto rally. Several key altcoins, including Cardano, are benefiting from increased investor confidence. With the current trajectory, ADA could move closer to reclaiming its 2021 high if market conditions persist.

Crypto Analyst Eyes Bullish Break Out For ADA

A crypto analyst recently shared an intriguing insight on X post, highlighting Cardano’s potential growth trajectory. The tweet emphasized that ADA may soon achieve $3, $7, and $14 milestones, aligning with a broader market “super cycle.”

The post included a chart showcasing ADA’s significant price levels, framing the $14 mark as a pivotal milestone. It also highlighted a $500 billion market capitalization benchmark, suggesting a bullish perspective on Cardano’s future growth.

The Cardano milestones of $3, $7, and $14 do not look far at all when you open up a daily chart.

Super. Cycle. pic.twitter.com/NvSw0p7z4o

— Dan Gambardello (@cryptorecruitr) December 13, 2024

At the time of writing, the ADA price is trading at $1.08, marking a 3.66% decline in daily performance. Despite the dip, technical indicators suggest pivotal movements ahead for the Cardano token.

If the bullish trend gains momentum, the top altcoin could rally to the $2 mark, fueled by increasing trading activity and strong investor sentiment. A continuation of this bullish trajectory might propel the price to $3.10, mirroring its 2021 all-time high. However, if bearish forces dominate, ADA could retrace further to $1, potentially erasing recent gains.

The MACD indicator highlights a bearish crossover, with the signal line at 0.1209 and the MACD line at 0.0912. The Chaikin Money Flow (CMF) remains positive at 0.11, pointing to sustained buying interest despite price declines. This suggests that market participants are still optimistic about ADA’s long-term potential.

While Cardano’s recent momentum hints at the potential for a bullish breakout, its ability to reclaim the 2021 ATH will depend on sustained market confidence and overcoming bearish resistance.

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