Cardano’s ADA crashed 9.64% on Tuesday as Bitcoin plummeted below $100K. This sell-off was not localized to BTC or ADA and has caused millions of dollars worth of positions to be liquidated. The price is struggling to retain around the $1 psychological level without any major impact to the bullish market structure.
Cardano hovers inside the $0.874 to $1.327 range, and the recent ascent failed to move past the range’s midpoint at $1.100. While the recent crypto market drop was brutal, even if ADA drops another 10% to 12%, its market structure will remain bullish, unlike other altcoins like XRP or SOL. We’re waiting for a flip of the range’s midpoint, which could happen as soon as Bitcoin pauses its descent.
The recent consolidation that began after the December 3 peak of $1.326 could likely be hinting at an end after the early January rally. While the recovery may take some time, investors must note that the altcoin looks bullish and ready to shoot higher.
Cardano’s Key Support Levels to Watch
The key support levels that crypto traders need to focus include $0.874, $0.819, $0.741, $0.659 and $0.594. Ideally, ADA price should form a potential bottom around $0.874, but the other levels could also serve as stable support that could catalyze reversal. While these barriers might support a downtre, only a decisive breakout above critical levels will confirm ADA’s bullish movement.
Breakout Signs and Future Market Outlook
As noted earlier, a decisive daily candlestick close above the 50% Fibonacci level at $1.100 would signal the end of the correction. This move would also kickstart a move ot the upside move. ADA has a history of reacting to key levels, leading to volatile breakouts ot the upside. Hence investors must keep their eyes peeled for reversal and breakout signs.
ADA Holders Need to Exercise Patience
Cardano shot up 306% between November 5 and December 3 and is now retracing, trying to find its ground.As a result, the ongoing month-long consolidation could be coming to an end. Hence, investors need to exercise patience during this accumulation phase. This outlook signals that the ADA is in the final phase, ready for upward movement that could be triggered by an external news, event or a swift flush below key levels.
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