Date: Mon, Dec 02, 2024, 10:55 AM GMT
Earlier today, the cryptocurrency market witnessed a bullish rally, with several major altcoins gaining traction. Cardano (ADA), one of the top-performing altcoins, surged over 10% to reach a high of $1.19. However, the market has since experienced a correction, and ADA is now trading at $1.07, marking a retracement of its earlier gains and a decline of 0.48%.
Source: Coinmarketcap
Pulls Back To Key Support
During this correction, $ADA has pulled back to a critical ascending trendline support around $1.07. This trendline has consistently provided a foundation for ADA's bullish momentum, and the current pullback represents a 10% correction from its daily high.
The $1.07 level is crucial. If ADA manages to hold this support, it could bounce back toward the resistance zone near $1.15. This range remains a key area to watch, as it could pave the way for ADA to retest its recent highs of $1.19.
However, in the case of a breakdown below $1.07, the next potential support levels are identified at $1.03 and, further down, $0.97. A failure to hold $1.03 may indicate a deeper retracement, pulling ADA closer to its previous accumulation zones.
Can It Bounce Back?
As of now, ADA is showing signs of strength around the $1.07 trendline, suggesting the potential for a reversal from this level. If buyers step in and sustain momentum, the price may push back toward the upper trendline resistance of $1.15-$1.19. However, traders should watch for signs of weakness or lack of volume at this level, which could indicate the risk of further downside.
Conclusion
Cardano's ability to hold the $1.07 ascending support is key to determining its short-term trajectory. A bounce from this level could renew bullish sentiment, while a break below could open doors to deeper corrections. Traders should closely monitor these critical levels and remain cautious amid market volatility.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.
