Cardano (ADA) Gearing Up for a Big Move? Key Levels to Watch

Cardano's native token, ADA, has faced volatile price movements recently, consolidating just below the $1 mark after rallying past $1.15 earlier.

Bitcoin (BTC) price opened the new week with a bang, rallying past the $105,000 level on Dec. 15, 2024, to hit a new all-time high (ATH). The rally comes amid a broader recovery in the cryptocurrency market following the recent downturn.

As BTC price rallied to new highs, several altcoins also posted impressive gains. Among them, Cardano’s native token ADA rallied by over 7% during the past 24 hours to trade at $0.996. The gains follow a recent consolidation phase below the $1 mark.

ADA Price Analysis

On the daily chart, ADA price is forming a symmetrical triangle between the $1.00 support and $1.09 resistance levels. A breakout from this pattern is typically followed by a sharp price move.

Notably, a similar consolidation pattern preceded ADA's impressive 2021 rally, where the token surged over 200% after breaking out from a symmetrical triangle around the $0.40 price zone.

If history repeats, the breakout from the current pattern could lead to a massive rally in ADA price. The first resistance level lies at $1.09, which also coincides with the 0.618 Fib retracement level from the recent swing low of $0.86 to the swing high of $1.39.

Breaking above this resistance could see prices rally toward $1.39, marked by the 1.618 Fib extension, or even further up to $1.77 at the 2.618 extension.

Technical indicators such as the Relative Strength Index (RSI) are positioned around 52.37, indicating neutral conditions. Meanwhile, the Accumulation/Distribution (A/D) line reflects steady buying activity at 12.13 billion.

Furthermore, Coinglass data shows that the Long/Short Ratio for ADA is currently at 0.91, suggesting that short traders are dominating the market. However, this setup could lead to a short squeeze and contribute to the buying pressure if resistance levels are breached.

Whale Footprint Reveals Key Levels for ADA

Recent on-chain analysis by Whale Footprints has highlighted several crucial price points for ADA. According to the analysis, the token faces strong resistance at $1.09 and $1.15, followed by weaker resistance levels at $1.22 and $1.39.

On the other hand, support levels are observed at $0.92, $0.86, and $0.76. Notably, the analysis suggests that whales are accumulating ADA heavily at prices below $0.86.

As ADA price attempts to rally further, breaking through these resistance levels and maintaining high network activity will be essential for the token to sustain its momentum in the upcoming weeks.