Cardano (ADA) price action has caught people’s attention after its powerful surge in November and early December. Analysts are looking to see whether the recent slowdown heralds a longer correction or the opening up of a new upward leg.
ADA Experiences Market Correction After November Rally
In November, Cardano price experienced a huge sudden spike in early December, reaching a high of $1.30. This rally has since paused and ADA has subsequently corrected and become sideway.
According to market data, the cryptocurrency has dropped by -19.85% over the past week and by only -0.74% in the last 24 hours, valued at $0.8874 at press time.
Cardano’s total market capitalization is listed at $31.87 billion, based on a circulating supply of 36 billion ADA tokens. These numbers reveal ADA’s dominance in the market and at the same time indicate that the price is impacted by the bearish sentiment.
Cardano price: Technical Indicators Signal Bearish Momentum
Cardano has been in a bearish trend and multiple technical indicators indicate that this might well continue for a while yet. The downwards trend is confirmed by the fact that the MACD line stays below the Signal line.
Additionally, the histogram shows negative values, though a flattening slope suggests a weakening in selling pressure.
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The Awesome Oscillator (AO) is also in negative territory, supporting the bearish outlook. However, its declining slope hints at potential exhaustion in the downtrend.
The Relative Strength Index (RSI) stands at 41.13, reflecting bearish momentum without entering oversold conditions. This indicates room for further price decline before a potential rebound occurs.
Analysts Identify Key Support Levels and Historical Patterns
With the focus placed on critical support levels, ADA boasts $0.68 as the nearest target potential correction support. During an extended bearish trend, the bearish pressure may deepen a pullback to $0.49.
Crypto analyst Zen has noted that a short-term dip to these levels could set the stage for a bullish continuation in early 2025.
Additionally, analyst Ali Martinez has compared ADA’s current correction to its 2020 market cycle. Martinez observed, “Cardano $ADA is following an eerily similar pattern to its previous cycle,” referencing ADA’s first significant pullback during a prior bull rally.
This historical perspective suggests the current dip might align with longer-term growth, echoing past trends.
Cardano Price Market Sentiment and Broader Ecosystem Developments
Cardano’s ecosystem is not only picking up technical movements, it is still gaining attention. Notably, Ripple Labs’ Chief Technology Officer David Schwartz recently won Charles Hoskinson’s admiration, the founder of Cardano describing the milestone Ripple technology leader as “intelligent and passionate.”
Hoskinson’s unexpected acknowledgment of Ripple, a blockchain to whom he once lashed out, has ignited rumours of a dead collaboration between the two blockchain giants.
The fact these developments hint of bigger moves that might affect ADA’s performance in future implies such developments. However, ADA sits at a crossroads, market participants are watching key support levels and technical signals to determine whether the reversal or continuation of the correction.
