- Cardano’s price has dropped by around 8% since hitting the $0.36 mark.
- ADA might lose 16% but still retain bullishness in the longer term.
- Nonetheless, breaching $0.239 will void the upside tale.
Cardano’s price experiences the initial correction signals following winter’s 55% rally. This analysis evaluates technical indicators and previous market trends to predict plausible cases for $ADA in the upcoming weeks.
ADA Price Displays Possibilities for More Upside
ADA experienced its massive red day of the year, with the smart contract coin losing 7% on 18 January. The slump emerged after 72 hours of consolidation at around the $0.35 territory. The eight-day EMA (Exponential Moving Average), which offered support amid a three-day grapple, finally surrenders and presents resistance on the near-term charts.
Cardano wavers at $0.3385 during this writing. A FIB retracement surrounding ADA’s 55% surge shows ongoing pullbacks as a shallow 0.236 retracement. Generally, a correction dip materializes after an enormous impulsive rally, pushing the asset’s value lower to the 50% or 61.8% Fibonacci mark.
If such cases emerge, ADA might lose 12-16% and maintain strength for another rally. As a result, primary bullish targets would remain at November’s peak of $0.43, leading to a 28% upward move from ADA’s price today.
Cardano bears haven’t attacked the ascending trend line, which offered support during ADA’s initial phase of the latest upside. Further, the volume indicator flashes fewer transactions amid the recent drop than when the ADA price soared, indicating that investors are not booking profits, hoping for higher price targets.
Considering all these facets, ADA’s next drip might offer a lucrative entry level for sidelined buyers to join the marketplace. Meanwhile, bears can cancel the upside potential by breaching the rally’s origin at $0.239.
Breaching the barrier above would welcome downside price tendencies. Cardano might plunge toward the psychological zone of $0.20 – a liquidity zone from 2020. That would see the bears catalyzing a 40% dip.
Cardano fans should also factor in broad market cues for money-making decisions. That can help them identify potential invalidation zones. Nevertheless, downsides will likely follow the latest notable surge before we continue the uptrend journey.