cryptonewsz.com
The crypto market recorded a notable downtick during Tuesday’s trading season as Bitcoin teased a breakdown below $95,000. This pullback has triggered a renewed correction whale in most major altcoins, including $ADA. However, a crypto analyst reveals the Cardano price downturn resembles a part of the 2020 rally, indicating the potential for uptrend continuation.
By press time, the $ADA price trades at $0.96 with an intraday loss of 3.63%. According to Coingecko, the asset’s market cap stands at $9.8 Billion, while the $13.1 Billion.
Key Highlights:
- The current Cardno price trajectory resembling the 2020 rally hints at an occasional pullback for buyers to revive bullish momentum.
- Crypto analyst the post-correction rally could drive the asset around $4 to $6 target.
- The $0.83 floor, backed by a 0.5 FIB level and 50-day exponential moving average, creates a strong pullback support.
Cardano Price Drop Mirrors 2020 Pattern: Analyst Predicts $4-$6 Target
Amid the recent market downturn, the Cardano price showed a 4-day fall from $1.23 to $0.96, registering a 21% loss. While the downtick breaks the $1 psychological level, crypto analyst Ali Martinez stated, “Cardano is doing the same as it did in 2020,”
The chart added in his tweet shows the $ADA entered a high-momentum rally in 2020 rally after a massive breakout from long-term accumulation. This uptrend witnessed in-between pullback to recuperate the exhausted bullish momentum.
Thus, the current pullback in $ADA price is an occasional correction for buyers before the next trip. If the theory holds true, the analyst predicts a potential target of around $4 to $6.
Fibonacci Levels Signal Buyer Strength in $ADA Price Action
According to the Fibonacci retracement level, the Cardano price is seeking support at 0.328 FIB level, around $0.94. Theoretically, the aforementioned falls under the safety net of FIB correction, indicating the buyers still have an upper hand in this asset.
A breakdown below $0.94 could extend the correction to $0.83, registering a 17% fall.
In addition, the $ADA price trading above daily EMAs (50, 100, and 200) shows high momentum rally active in near ternm.