Cardano (ADA) has been volatile in recent weeks, drawing attention from investors and analysts. After reaching a local high of $1.15 on November 23, the price retraced sharply and recently failed to reclaim this key level. The inability to break above $1.15 has raised questions about whether ADA’s bullish momentum can sustain the recent uptrend.
Top analyst and investor Ali Martinez weighed in, highlighting that a 20% correction could occur if Cardano loses a key demand zone. His analysis suggests that ADA’s current consolidation phase could serve as a basis for another rally or could lead to a further decline if the key support level fails to hold.
The next few days will be crucial for Cardano as its price action will determine if it can break out to yearly highs or fall back to lower levels for consolidation. Investors are closely watching whether ADA can hold onto key support areas as losing them could signal a deeper retracement.
Conversely, a decisive break above $1.15 could revive optimism and set the stage for further gains. Cardano remains at a critical juncture, with risks and opportunities converging to shape the market outlook.
Cardano’s power weakens
Cardano’s (ADA) price action is showing weak momentum as it struggles to sustain its upward trajectory. After failing to decisively break above the key $1.15 resistance level, ADA’s bullish momentum appears to be waning. Analysts are now questioning whether Cardano can sustain its recent gains or is poised for a deeper correction.
Analyst Ali Martinez shared a detailed technical analysis of X, highlighting key levels that could determine where ADA moves next. Martinez said a close below $1.10 would signal a possible change in trend, sparking concerns among investors.
Furthermore, he noted that a break below $1.03 would confirm a bearish breakout that could push prices down to $0.88. Martinez’s analysis highlights the importance of supply and demand zones, suggesting that these levels could trigger violent price reactions in either direction.
Despite the bearish outlook, there is still room for optimism. If the broader cryptocurrency market resumes its bullish trend, Cardano could recover and potentially move toward new highs. However, any upside move would likely lack the strong momentum seen in earlier rallies.
Cardano remains at a critical juncture as its price hovers near a crucial support level. The coming days will determine whether ADA can regain its bullish momentum or succumb to the increasing selling pressure.
ADA testing supports critical demand levels
Cardano has failed to sustain its recent bullish momentum above the previous high of $1.15 and is currently trading at $1.08. Although the price briefly touched a new high of $1.19, it failed to sustain this level and fell below the $1.15 threshold - a key demand area that now acts as resistance. This inability to sustain above the previous high raises concerns about the strength of ADA's uptrend.
The $1.15 level is crucial for Cardano’s short-term price action. If ADA is able to reclaim this level and establish it as solid support, it could revive bullish sentiment and potentially pave the way for further gains. Failure to do so, however, would increase the risk of a deeper pullback as the current price suggests a lack of sustained buying pressure.
Market participants are closely watching ADA’s price action around this critical area. A sustained move above $1.15 could signal renewed demand and spark another attempt to move towards $1.20 and above. Conversely, continued weakness at current levels could lead to further declines, with ADA testing lower support levels.