Some of its most recent movements have seen Cardano touch a low of almost $1, leading to focus among investors and analysts. all the more so, the decline can be considered a temporary correction in the overall movements of the cryptocurrency market after a powerful increase. Nonetheless, a few of the best analysts for the cryptocurrency anticipate ADA will be valued between $4 and $6 in the next moments if it can sustain these important support points. However, it is worth knowing that, in general, Cardano has the chance to grow further after the recent drop.
The Market Correction Bumps the Dynamics of ADA
Recently, the cryptocurrency market witnessed its first major liquidation within 24 hours. Traders dumped $1.76 billion in cryptocurrencies. This has exerted bearish pressure on many altcoins, including Cardano, under 9% pressure. Even though this market volatility may give Cardano investors some headaches, analysts still predict the best for the crypto token.
According to the prominent crypto market analyst Ali Martinez, it is similar to what happened to Cardano last year. He is convinced they should have risen, but he has embraced historical factors showing that ADA has had tendencies of a V-shaped decline. In a recent post in X, Martinez commented, “Even if it goes down to $0.76, I’m going to buy more and am going to take profits in the $4 to $6 range.” The belief in the asset is based on the growth rates that are presumed over the long run and, more importantly, the support levels that have been created.
Key Support Levels: What Investors Should Watch
Currently, Cardano is priced at $1.01 and has been cut by 10%. However, the crypto’s trading volume has now risen by about 122%, which means people are still investing in it. Responding to ADA, Martinez emphasizes the critical levels of support.
However, the most important level is $1.20, which was recently crossed. Approximately 93,000 addresses bought ADA worth 2.54 billion at this price, ensuring the stability of the coin’s future price.
Martinez also mentioned that the next demand zone would be $1, which could be a basis for further upward movement. If Cardano maintains its price above this level, it can move towards $4; some experts call for an even $6.
Market Mood and Long-Term Forecast for Cardano
However, a short-term concern for ADA is not apparent in the long-term outlook of the broader market. Cardano is currently in the Relative Strength Index (RSI) zone of 53, which means it’s impartial. This means the crypto may have more upside should it exceed the current resistance levels. As long as Cardano stays above the support level it is at now, there are good chances for its price to rise even more in the future.
However, not only this, the crypto market overall is now showing signs of a comeback. ADA’s Fear & Greed Index is at 78, which shows the current phase as Extreme Greed.
Alt text: Chart showing Cardano (ADA) Iive price today. Source: TradingView
Signs that investors’ confidence is still intact are also evident from the fact that comparable data are still quite high even despite fluctuations in the near past. Still, market trends remain positive this week, allowing Cardano to show good results in the future.
Looking Ahead: What’s Next for Cardano?
Despite the drawbacks identified earlier, the near future appears promising for Cardano. If it holds above its crucial levels, the ADA price can see a massive move back to $4 or even $6. It is recommended to pay attention to $1 and $1.20, as they will define the direction of the asset in further trade.
The price forecasts for the year 2024 bring the Cardano price, according to coinglass data, range between $0.91 and $1.06. However, with such a range, it is advisable to invest in long-term investments, which may yield a good return if the price remains afloat. The situation will be critical for Cardano shortly; the r/usage level’s ability to continue the support will determine the short-term and long-term outlook.
Despite the bullish market and ADA holding key support levels, Cardano’s price may surge soon.
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