Cardano (ADA) is once again trading above the $1 level and is up by more than 7% in the last 24 hours. The altcoin may be entering a crucial zone in the next few hours, and here's an analysis of what's next.
Wave 4 Setup and Support Zones
ADA’s price is currently in a potential Wave 4, with support expected between $0.85 and $0.60. The most critical support level to watch is around $0.702. The pullback has been deeper than expected, making it likely that Wave 4 is unfolding.
Bullish Potential Despite Pullback
The pullback from the November 23 high was in three waves rather than five, leaving room for potential upward movement. While this doesn’t guarantee a breakout, it keeps the door open for higher prices.
Resistance Zones and Market Outlook
As ADA approaches resistance, price action needs to be monitored closely. Standard resistance levels are between $1.14 and $1.12, with another level around $1.87. If ADA breaks these resistance levels and continues higher, it could signal the start of a bullish trend. If the price faces rejection, it may indicate a corrective move.
Investors are advised to keep an eye on support and resistance levels to assess potential market movements. Uncertainty in the current movement might soon resolve, creating clear trends.
