The cryptocurrency market is experiencing volatility once again after a prolonged rally. Ethereum and Cardano are under the pressure of correction.
Market Correction
The cryptocurrency market is undergoing a wave of volatility following an extended rally. Ethereum (ETH) fell to $3,650 from a recent peak of $3,875. This decline has negatively impacted other altcoins, including Cardano (ADA), which is down 4% today, trimming its monthly gains to 39%.
Comparison of ADA with SEI
An analysis of ADA's chart shows it forming a nearly identical pattern to SEI. SEI recently broke free from a declining wedge pattern, experiencing significant gains after reclaiming its 200-day moving average. ADA appears to follow this same path, having also broken through its falling wedge and is now testing crucial support at around $0.7418.
Forecast for Cardano
If ADA's price action continues to mimic SEI’s pattern, it may briefly dip towards its 200-day MA near $0.7418 before stabilizing and launching upward. A breakout above the yellow resistance zone on strong volume could pave the way for a rally towards $1.12, indicating a potential 50% upside from the current support level. However, the broader market correction adds a layer of caution.
Thus, despite the current downturn, the fractal resemblance between ADA and SEI may indicate a potential recovery in the future.
