Is Cardano (ADA) Done Correcting After 25% Pullback?

Cardano (ADA) has had an impressive run in November, with a 195% increase in its price. This surge led to ADA reaching a 959-day high of $1.15 on Nov. 23. However, after hitting this peak, ADA experienced a slight decline of $25. The big question now is: when will this short-term correction come to an end?

Looking back at November, ADA’s price showed significant growth, with three consecutive bullish weekly candlesticks driving a 275% increase. This upward momentum brought ADA to $1.15, its highest price since April 2022. Despite this surge, ADA faced resistance at the long-term level of $1.15 and was subsequently rejected, resulting in a 17% price drop.

Analyzing the ADA price movement reveals some interesting patterns. Technical indicators like the weekly Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) show bullish signs, suggesting a positive long-term trend for ADA. The RSI and MACD are both above their respective bullish thresholds, indicating potential further growth despite the recent short-term decline.

Moving to the daily chart, it appears that ADA is in wave four of a five-wave increase, with wave three being extended. The price has found support at the 0.382 Fibonacci retracement level of $0.832, hinting that the bottom of wave four may be in. There’s a possibility of a symmetrical triangle formation, a common pattern for wave fours, which could lead to a consolidation before a breakout.

Given the absence of bearish divergence in the RSI and the MACD, it seems likely that there is more upward movement in store for ADA. The initial target for the top of wave five is $1.33, followed by a potential rise to $1.67. On the flip side, if wave four deepens further, ADA could drop to $0.73 before resuming its upward trajectory.

Despite a recent decline, Cardano has been one of the standout performers in the cryptocurrency space this November. While the short-term correction may be ongoing, signs point to a bullish trend in the long run for ADA, with the potential for significant price increases in the near future. Always remember that investing in cryptocurrencies carries risks, so it’s essential to do thorough research and consider consulting with a financial advisor before making any investment decisions.