As the Cardano (ADA) bull run gains momentum, analysts warn of a pullback as indicators flash a potential short-term correction.
Cardano has experienced a steady rise in recent weeks, reaching the $1.10 mark after a 220% monthly surge. However, sustaining momentum at this level has proven difficult.
Multiple attempts to break past $1.10 were met with rejection, indicating a formidable resistance zone. At press time, the crypto trades at $1.07, reflecting a modest 0.12% gain in the last 24 hours.
Indicators Signal Potential Reversal for Cardano
Technical analysis signals a growing risk of a price correction for Cardano. The appearance of a TD Sequential sell signal on the 3-day chart hints at a possible trend reversal or pullback.
According to analyst Ali Martinez on X, ADA proponents could target $0.88 if the correction occurs. This price point aligns with the Fibonacci 0.786 level, from which a major rebound could follow.
Is Cardano Overbought Yet?
Momentum indicators support concerns over a potential pullback. The Relative Strength Index (RSI), previously in overbought territory above 70, has begun to drop, signaling a weakening of bullish momentum.
Although there’s no clear bearish divergence yet, the RSI decline, coupled with a red candlestick, could signal the start of a reversal.
Meanwhile, the MACD indicator shows the MACD line at 0.1543 and the Signal line at 0.1481, suggesting diminishing momentum. The convergence of these lines raises the possibility of a bearish crossover if the current trend persists.
Cardano Long-Term Potential
Despite near-term resistance, some analysts maintain an optimistic outlook for Cardano. Prominent pundit Dapp Central has described this period as a potential final opportunity for accumulation, citing bullish Bitcoin forecasts by Cardano founder Charles Hoskinson.
Notably, Hoskinson recently forecasted that Bitcoin could reach between $250,000 and $500,000 within 24 months, which is seen as potentially ushering in a significant bull cycle for altcoins, including Cardano.
On the other hand, analyst Lark Davis offers a more ambitious long-term outlook for Cardano. Based on Fibonacci projections, Davis argued ADA could revisit its all-time high of $3.16 during this cycle and even climb to $4.80, $7.70, and ultimately $10.
Davis attributes this growth potential to increasing interest in Cardano’s ecosystem and favorable macroeconomic conditions.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
