The crypto market recorded a notable downtick during Tuesday’s trading season as Bitcoin teased a breakdown below $95,000. This pullback has triggered a renewed correction whale in most major altcoins, including ADA. However, a crypto analyst reveals the Cardano price downturn resembles a part of the 2020 rally, indicating the potential for uptrend continuation.
By press time, the ADA price trades at $0.96 with an intraday loss of 3.63%. According to Coingecko, the asset’s market cap stands at $9.8 Billion, while the $13.1 Billion.
Key Highlights:
- The current Cardno price trajectory resembling the 2020 rally hints at an occasional pullback for buyers to revive bullish momentum.
- Crypto analyst the post-correction rally could drive the asset around $4 to $6 target.
- The $0.83 floor, backed by a 0.5 FIB level and 50-day exponential moving average, creates a strong pullback support.
Cardano Price Drop Mirrors 2020 Pattern: Analyst Predicts $4-$6 Target
Amid the recent market downturn, the Cardano price showed a 4-day fall from $1.23 to $0.96, registering a 21% loss. While the downtick breaks the $1 psychological level, crypto analyst Ali Martinez stated, “Cardano is doing the same as it did in 2020,”
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The chart added in his tweet shows the ADA entered a high-momentum rally in 2020 rally after a massive breakout from long-term accumulation. This uptrend witnessed in-between pullback to recuperate the exhausted bullish momentum.
Thus, the current pullback in ADA price is an occasional correction for buyers before the next trip. If the theory holds true, the analyst predicts a potential target of around $4 to $6.
Fibonacci Levels Signal Buyer Strength in ADA Price Action
According to the Fibonacci retracement level, the Cardano price is seeking support at 0.328 FIB level, around $0.94. Theoretically, the aforementioned falls under the safety net of FIB correction, indicating the buyers still have an upper hand in this asset.
A breakdown below $0.94 could extend the correction to $0.83, registering a 17% fall.
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In addition, the ADA price trading above daily EMAs (50, 100, and 200) shows high momentum rally active in near ternm.
