Cardano prices (ADA), which are a cryptocurrency, increased on Friday by more than 3% amid a bullish trend in the market. This minor increase is only a reaction to the negative trend that began earlier in the week. Popular crypto analyst Ali Martinez has stated that the market could experience even greater losses for the ninth largest cryptocurrency if technical support does not hold.
Cardano critical support break could lead to 36% decline
The underlying cause of the problem is a recent post Martinez warns of a possible price drop in the current ADA structure on X. Martinez’s Fibonacci levels analysis suggests that Cardano is still trading near an important support zone in spite of recent gains.
Fibonacci levels of retracement are commonly used horizontal lines to indicate potential zones of support or resistance. These levels are calculated using the Fibonacci series and can be used to predict a fall in price, a gain, a consolidation or a reversal.
Looking at the chart below, ADA currently trades at $0.66 which is just above the 50% Fibonacci retracement level at $0.63 – a price zone that has acted as a resilient support level in recent weeks. Ali Martinez says a daily closing below $0.63 will signal a shift to the bearish side of market control, paving way for further losses.
Cardano may fall in this scenario to the next important support level at the Fibonacci Retracement Level of 61.8%, around $0.53. If this selling pressure continues, ADA’s price could drop to $0.42 which is the 78.6% Fibonacci retracement.
What is Next for ADA
Cardano is struggling to keep a bullish trend after hitting a peak local of $1.30 at the beginning of December 2024. Since that time, ADA’s prices have fallen along with other crypto markets.
ADA bulls must defend the $0.63 price point to keep their bullish outlook valid. A successful price recovery of the $0.63 level is crucial to sustaining any bullish outlook. $0.78-$0.80 price zone Altcoins would experience a price increase and a market recovery.
Cardano was trading for $0.66 at the time this article was written. ADA’s chart shows that despite recent gains it is now down by 5.00% and 33.58 % respectively on the weekly and monthly charts.
In the last 24 hours, trading volumes have increased by 19.56%. This indicates a growing market interest. The recent price rise could be sustained due to the strong confidence among buyers.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: www.newsbtc.com
