With the Cardano price trend turning bearish over the past week, will buyers defend the $0.90 level for a potential recovery in the days ahead?
Amid the broader market correction, altcoins have experienced significant losses. Cardano has seen a substantial drop during this correction phase, losing the critical $1 psychological level.
Will increased speculation in the market lead to a rapid decline in Cardano prices, or is a bullish reversal possible?
Cardano Price Analysis
Currently, Cardano is trading at $0.90, with an intraday gain of 1.93%. This recovery comes after a bearish weekend, during which the price dropped 4.84% on Saturday, followed by a 3.32% decline on Sunday.
At present, ADA struggles to maintain levels above the 50-day EMA line, encountering lower price rejections at the $0.85 psychological level. The 24-hour low remains at $0.86, while the crucial support, the center pivot line, is at $0.851.
With an intraday recovery, ADA is showing potential for a bounce back to an overhead resistance trendline, forming a falling wedge pattern. The Cardano price trend continues to hover above this critical level with lower price rejections from the center pivot line.
This increases the likelihood of the altcoin reclaiming the $1 psychological level if the broader market recovers. Based on the current price action, the overhead resistance trendline aligns with the $1 mark, which could act as a key resistance level.
In the event of a breakout rally, the Cardano price could target the $1.239 resistance level. On the other hand, the $0.85 support, combined with the local trendline, serves as a bullish floor.
In the case of a bearish outcome, a breakdown could see the price retest the 100-day EMA line at $0.727, implying a downside risk of nearly 20%.
Analyst Remains Optimistic, Targets $6
Despite the short-term risk, independent analyst Ali Martinez has highlighted the possibility of Cardano reaching the $6 mark.
However, in his tweet, he pointed out the likelihood of a major correction similar to the price action seen in 2020.
Drawing a parallel to the 2020 bull run, Martinez believes that Cardano’s price will likely undergo a significant correction following the current rally, much like what occurred during the previous cycle.
With an optimistic price target of $6, he suggests that the ongoing correction could present a lucrative buy-the-dip opportunity for Cardano supporters.
