Cryptocurrency Cardano (ADA), the native token of the Cardano blockchain platform, has been in a correction phase since it established its annual peak in December 2023. After failing to break through the upper limit of this correction model on January 11, its price began to decline. It is important to understand the prospects for ADA in the near future.

Analyzing the daily charts, it can be seen that ADA has been moving within an ascending channel since June 2023. After several attempts to overcome resistance, the asset managed to reach its peak at $0.68 on December 14. However, after that, the price of Cardano significantly dropped, forming characteristic long upper shadows on the candles, which usually indicates pressure from sellers.

The Relative Strength Index (RSI) on the daily chart also confirms the negative trend, having fallen below the 50 mark and continuing to decline. A similar situation is observed on the six-hour charts, where there is also no clear direction of price movement, which is related to its dynamics and RSI indicators.

Since December 14, ADA has been trading within a descending channel. On January 8, the asset rebounded from its lower boundary, confirming the Fibonacci 0.5 level at $0.46, but it still could not break out of this channel. Currently, the price is below the middle line of the channel, and the six-hour RSI is also below 50.

The future movement of Cardano's price will depend on its ability to overcome the upper boundary of the current pattern or a downward breakout. In the case of a successful upward breakout, a 30% price increase to around $0.70, corresponding to the 2023 peak, can be expected. In the case of a downward breakout, a 25% drop to the next support level at $0.37 is possible.