The cryptocurrency market is experiencing a broad correction after a strong rally in late 2024. Cardano (ADA) is one of the altcoins that has seen notable declines, down over 26% in the last 30 days. ADA is now testing a key support level that could determine its next move.
Testing Key Support Level
According to crypto analyst @JohncyCrypto, Cardano (ADA) is forming a bullish flag pattern on the daily chart. This technical formation often signals potential upside if support holds and a breakout occurs. ADA is currently trading at $0.69 and testing support of the bullish flag. A bounce from this level could lead to a strong recovery, but if it fails, the price may drop to a major support area near $0.60.
Technical Analysis and Projections
The price will remain within a descending channel, which could act as a continuation pattern for further upside. The 50-day moving average has been a dynamic resistance, and a successful breakout above it could confirm bullish momentum. If ADA rebounds from support, it could rally toward $0.845, $1.000, $1.150, and even $1.325, as indicated by the chart projections. The Relative Strength Index (RSI) is currently near the oversold region, suggesting that selling pressure may be exhausting, increasing the chances of a reversal.
Final Thoughts
Cardano (ADA) is at a crucial juncture, testing a major support level that could either lead to a strong bounce or further downside. Traders should closely watch price action, volume, and RSI signals to confirm the next major move. As the market remains volatile, risk management is essential for navigating potential opportunities in ADA’s price action.
Cardano (ADA) stands on the brink of a significant move. With high volatility, it's crucial to monitor technical signals and continue market analysis.
