Cardano Price May Retrace Back Before Potential Advancement To $1.20

• Analysts anticipate a potential dip in Cardano price to $0.45, presenting a strategic buying opportunity.
• Additionally, analyst ALI suggests that ADA could reach as high as $6 by next year, highlighting its strong growth potential.
• In the long term, projections point to a bullish target of $1.20.

Cardano (ADA) has captured investor attention with its recent rally, sparking speculation that it could approach a new all-time high.

Over the past two weeks, Cardano price has grown consistently, reaching a two-year high of $0.81 on November 16 before pulling back. It is at $0.75, reflecting a 5% drop from its recent peak.

Meanwhile, on-chain metrics, technical indicators, and some analyst insights suggest that this downward trend might persist in the short term.

As a result, the focus remains on whether Cardano price can regain its upward momentum in the coming days or face further consolidation.

Cardano Holders Sold Its Holdings For Gains

On Monday, ADA transactions showed remarkable profitability. According to Santiment data, the ratio of daily on-chain transaction volume in profit versus loss has reached 3.35, the highest single-day value since June 2020.

This indicates that for every losing ADA transaction, 3.35 transactions were profitable.

Such a high profit-to-loss ratio could signal a prime opportunity for traders to lock in gains, potentially adding to selling pressure and contributing to downward momentum in Cardano price.

Analyst Outlook – Short-term and Rise in the Long Term

Cardano (ADA) remains highly volatile, with analysts predicting a potential short-term decline followed by a long-term uptrend.

Crypto analyst Kenshiyesreel has adopted a bearish short-term outlook, anticipating a pullback to the $0.45-$0.50 range. This could present a key accumulation opportunity.

On the other hand, technical indicators like the Golden Cross point to the possibility of continued bullish momentum, provided Cardano price holds above critical support levels.

Kenshiyesreel also highlights ADA crypto‘s recent price action, noting that a completed “falling wedge” pattern suggests a potential upward reversal ahead.

I've shorted $ADA #Cardano at this price with a target of $0.45-$0.50 to accumulate more on spot https://t.co/F4EBVB7x1N pic.twitter.com/WZf1ZlZucM

— Yesreel (@kenshiyesreel) November 15, 2024

The analyst predicts a potential short-term dip in Cardano price, suggesting an ideal buying opportunity in the $0.45-$0.50 range, as selling pressure could temporarily weigh on the token.

If the upward momentum resumes after the pullback, the analyst has set a target price of $1.20.

Key Support Levels and Potential for Bullish Breakout For Cardano Price

If Cardano price sustains above $0.5464, it could break past its recent high of $0.63 and target the $0.70 resistance level. A move above $0.63 would reinforce the medium-term bullish outlook.

However, if support at $0.5464 is lost, ADA price may drop to the $0.4663 support area, signaling a deeper pullback.

Further, fibonacci retracement levels at 50% and 61.8% validate these zones as potential buying levels.

Kenshiyesreel’s short-term prediction for Cardano price to dip and accumulate between $0.45 and $0.50 aligns with these retracement levels. This suggests that this area could attract buying interest.

Additionally, analyst Ali has forecasted that ADA price has the potential to reach $6 by mid to late 2025, from July to September.

Disclaimer

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.