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Cardano ($ADA) is once again trading above the $1 level and is up by more than seven percent in the last 24 hours. The altcoin will be possibly entering a crucial zone in the next few hours and here’s a analysis of what’s next:
Wave 4 Setup and Support Zones
$ADA’s price is currently in a potential Wave 4, with support expected between $0.85 and $0.60. The most critical support level to watch is around $0.702.. This wave could extend higher, but the recent pullback has been deeper than expected, making it more likely that Wave 4 is unfolding.
Bullish Potential Despite Pullback
The pullback from the November 23 high was in three waves rather than five, which leaves room for a potential upward move. While this doesn’t guarantee a breakout, it keeps the door open for higher prices.
Fibonacci Support Levels Reached
Key Fibonacci support levels between $0.88 and $0.778 have been reached, and the market is now testing resistance levels. The ideal target for the current move was the 100% Fibonacci extension, which has already been met, and $ADA is now attempting to push higher.
Resistance Zones and Market Outlook
As $ADA approaches resistance, we need to monitor the price action closely. Standard resistance levels are between $1.14 and $1.12, with another level around $1.87. If $ADA breaks these resistance levels and continues higher, it could signal the start of a bullish trend. However, if the price faces rejection, it may indicate that the current rally is part of a corrective move.
Key Levels to Watch
If you’re holding positions from the Fibonacci support zone, the analyst said to consider moving your stop-loss to break-even to protect profits. Watch for potential support around $0.85 and $0.77 if the price declines.