The Cardano (ADA) price declined after reaching a new annual high of $0.68 on December 14, ending a series of eight bullish candles. In this article, we will look at whether bulls should worry.

Cardano has reached a new annual high

The weekly chart shows a rapid increase in the price of ADA since October. In the process of this growth, the price overcame the long-term horizontal resistance that had existed for 420 days and reached a new annual high of $0.68 on December 14.

However, a bearish candle was formed last week, characterized by a long upper wick, and since then the ADA price has declined slightly.

Despite this slight decrease in the ADA price, the RSI momentum indicator significantly exceeds the 50 level and indicates a bullish trend.

ADA forecast: correction or continued growth

The Blue Crypto cryptocurrency trader considers the $0.68 level to be the key resistance level. If the price breaks this level, it can quickly rise to the next resistance at $0.90.

However, the daily chart indicates the need to correct the ADA price before a possible continuation of growth to new highs.

According to the most likely scenario of Elliott wave analysis, ADA may not overcome the $0.68 resistance level and start the fourth wave within the five-wave bullish structure. The sub-wave analysis is shown in white on the graph. In this case, the token may fall by 18% to the Fibonacci retracement level of 0.382, which is at $0.50.

The daily RSI also supports the downside scenario, as it has formed a bearish divergence.

However, if the ADA price continues to rise above $0.68, this may indicate the expansion of the third wave. In this case, the price could potentially rise by 40% to the next resistance level at $0.88.