ADA's Precarious Perch: $0.8 Breach Could Spark Broad Correction
Cardano Price Analysis & Prediction: ADA Faces Broad Correction Risk if Key Support Breaks
Cardano's ADA token has been experiencing a significant correction in recent weeks, with the price trading near a crucial support level. Despite the losses, the mid-term bullish trajectory of ADA remains intact. However, a breakdown below the $0.8 level could trigger a broad correction, with the key target level being $0.4.
The current market structure of ADA is weak, with a steady reduction in price over the past few months. This suggests a strong bearish presence, and the selling pressure is likely to increase if the bears show strong commitment. A rebound from the crucial support level is the only condition for a bullish move at this point.
If the $0.8 level continues to provide support, we may see an upward movement with a double-bottom pattern. However, the bears are likely to have an upper hand in the near term. Breaking down the $0.86 support could cause a serious sell-off to $0.765 and $0.65 before reaching the key target level of $0.4.
On the other hand, if ADA continues to hold the $0.8 level well, we may see a bounce back to $0.988. Retaking January's $1.152 high should send us to the $1.32 resistance with a potential break up to $1.5.
Key Resistance Levels: $0.988, $1.152, $1.32
Key Support Levels: $0.86, $0.765, $0.69
Price: $0.93
Trend: Bearish
Volatility: Moderate
