Cardano, one of the cryptocurrencies, following Bitcoin's movement, is currently experiencing a pullback. Let's examine the current market situation and potential outcomes.
The USDT Paired Chart
On the USDT-paired chart, the asset began its aggressive rally at the beginning of November, breaking the 200-day moving average upwards. Since then, multiple resistance levels have been broken, but the $1.2 level has been a repeated barrier. The market’s failure at $1.2 led to a correction toward the $0.75 support zone, effectively preventing further decline. If this level holds, ADA might surge above the $1.2 mark. Otherwise, it could drop towards the 200-day moving average at approximately $0.5.
The BTC Paired Chart
On the ADA/BTC daily chart, it is clear that Cardano outperformed Bitcoin during the recent rally, but on a broader scale, it's depreciating against BTC. The 1,000 SAT support level is nearly breached, which could lead to a decline toward the 200-day moving average around the 700 SAT mark. Therefore, it is likely that Bitcoin will outperform Cardano in the coming weeks.
Conclusion
Cardano is facing challenges amid the overall cryptocurrency market trend. Support at critical levels might play a crucial role in determining the asset's price movement. Otherwise, potential further declines to lower price levels may occur.
Cardano faces challenges in line with the overall cryptocurrency market trend. Support at some critical levels may play a decisive role in the future price trend.
