Cardano (ADA) Price at a Crossroads: Will It Break Out or Fall?

Cardano (ADA) is currently going through a critical phase in its price movement. If we look at the daily chart, we see that ADA has just finished an uptrend move that pushed it to $1.31 on Dec. 3.

ADA has since entered a correction phase, which is a natural phase of its price cycle. The current price is $0.90, close to a 0.382 key level on the Fibonacci retracement.

Right now, the correction is taking the shape of a descending triangle. However, the question is whether the price is near the end of this correction.

Looking at the Relative Strength Index (RSI), the line is showing a weak momentum below the 50 average level which means that the correction is almost finished.

But, ADA could possibly bottom out at around $0.70, which is another key support level. A breakout above $1.07, which represents the 0.236 Fibonacci retracement, could indicate that ADA is ready for the next uptrend move.

On the hour chart, ADA has just crossed below a support line at $1.07. The new support is currently at $0.89, and then below that is $0.81, which is a more important one.

If ADA continues to rise, it could reach $1.39 or even $1.55. There is, however, a resistance at $1.01 where the price may struggle to pass through.

"Disclaimer: This is for informational purposes only and not endorsed by Binance. Crypto investments are volatile and can lead to losses. Do your own research. Not financial advice."

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