Cardano (ADA) Price Correction Possibly Ending After 25% Pullback

Cardano (ADA) has been on a rollercoaster ride in November, skyrocketing by a whopping 195% to hit a high not seen in 959 days on Nov. 23. The price surge led ADA to reach $1.15 in a series of three bullish weekly candlesticks to start the month. However, this peak was met with resistance at $1.15, signaling a possible downturn.

Despite a $25 drop from the highs, there are indications that the ADA correction may be coming to an end soon. Let’s take a closer look at the recent price movements of ADA to pinpoint key levels that could mark the end of this short-term correction.

Looking at the weekly chart, it’s clear that ADA has been on a rapid rise, especially after forming an inverse head-and-shoulders pattern between April and October. The price climb culminated in hitting $1.15, the highest level recorded since April 2022. While ADA struggled to break above the long-term resistance at $1.15 and faced a rejection, technical indicators like the Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) continue to show bullish signals.

Analyzing the daily chart reveals that ADA is currently in wave four of a five-wave increase pattern. The price has found support at the 0.382 Fibonacci retracement level of $0.832, suggesting that the correction might be coming to a close. There’s a possibility that ADA could consolidate in a symmetrical triangle pattern before making its next move.

Despite the recent pullback, there are no bearish divergences in the RSI, and the MACD has not indicated a bearish cross, indicating that the upward momentum may not be completely exhausted yet. The next target for ADA is set at $1.33, with a potential further fall to $0.73 if wave four deepens.

While ADA has experienced a short-term decline recently, it’s important to note that Cardano has been one of the top-performing large-cap cryptocurrencies in November. As we move into December, the future looks bullish for ADA, with potential targets of $1.33 and even $1.67 on the horizon.

Remember, investing in cryptocurrencies carries risks, and past performance is not a guarantee of future results. It’s always advisable to consult with a financial advisor before making any investment decisions.