- Cardano (ADA) has dropped more than 5% in 24 hours and faces a retest of $1.
- The altcoin will turn bullish in the next two or three weeks, claims analyst Ali Martinez.
- ADA can skyrocket to $6, Martinez said, while highlighting previous market movements.
ADA, the native token of the Cardano blockchain, has dropped 5.11% in the past 24 hours, trading at $1.07 at the time of writing. Despite its decline, ADA remains the ninth-largest digital asset with a market capitalization of $37.74 billion, although it is still down 65.63% from its all-time high of $3.10.
Data from CoinMarketCap shows that ADA reached a daily high of $1.16, attempting to flip the $1.10 resistance into a support level. However, the attempt failed, resulting in a bearish breakout. If the $1 level does not hold, the next significant support lies at $0.90.
Analyst Predicts ADA Rally to $6
While ADA’s short-term outlook appears challenging, analyst Ali Martinez suggests a potential rally to $6 could be on the horizon. Martinez highlighted a pattern from 2021 when ADA dropped 44% before initiating a strong upward movement. Drawing parallels, the analyst predicts that ADA’s next leg up in this cycle may occur within two to three weeks.
Related: Cardano (ADA) Price Prediction for January 17: What to Expect in the Next 24 Hours
ADA Price Analysis
Over the past seven days, ADA has gained 16.00%, with a 9.63% increase over the last month and a 105.36% surge in the past year. However, to confirm a bullish breakout, the token must surpass the $1.50 resistance and establish it as a new support level.
The RSI indicator currently reads 56.26, signaling that while bulls have some control, selling pressure is rising. The RSI gradient suggests a possible retest of the $1 support level in the short term.
Related: Altcoin Market Primed for $1.3 Trillion Run After 36-Day Correction, Analyst Predicts
Meanwhile, the MACD indicator remains bullish, but a decreasing histogram indicates weakening momentum, further pointing to an increase in selling activity.
Key Takeaways:
- ADA faces immediate resistance at $1.10 and a critical support level at $1.00.
- A breach below $1.00 could see ADA testing $0.90 as the next support.
- Analyst predictions indicate a potential rally to $6 based on historical trends.
- To sustain bullish momentum, ADA must overcome the $1.50 resistance and hold above it.
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