ADA Skyrockets 8% as Cardano Climbs Back to $1, What's Next?
2024-12-11
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Cardano ADAUSD has made a significant comeback, surging 8% to reclaim the $1 mark. The recent gain comes amid a broader crypto market rebound following a shakeout earlier this week.
Cryptocurrencies fell Monday amid a brutal shakeout that saw Cardano ADAUSD drop 15% in 24 hours. The plunge caused one of the largest leverage flushes in years, resulting in the liquidation of almost $1.5 billion in bullish derivative bets.
At press time, a handful of cryptocurrencies had returned to the green, ahead of the release of U.S. inflation statistics later today.
A key economic report due out on Wednesday is likely to reveal that progress in lowering inflation has stopped, but not to the point that the Federal Reserve will not cut interest rates next week.
The market is closely watching to see if ADA can maintain its upward trend and break through crucial resistance levels.
What's next for ADA price?
ADA sharply declined to lows of $0.911 in Monday's trading session, marking a three-day fall. In the process, ADA fell below $1. Prices began to recover on Tuesday from a low of $0.93.ADAUSD Daily Chart, Courtesy: TradingView">
At the time of writing, ADA was up 10% in the last 24 hours to $1.08, having reached intraday highs of $1.09.
If ADA maintains its momentum over $1, it may draw further buying interest, paving the way for a climb to higher resistance levels around $1.20.
A break over the $1.25-$1.33 resistance zone could indicate the return of the upswing. ADA might then rise to $1.64, which is expected to function as a strong resistance.
However, profit-taking and future market declines may act as headwinds for the advance. Maintaining the $1 support level will be critical to sustaining upward momentum. A plunge below this level could result in a drop to $0.87. Such a steep decline could postpone the start of the next leg of the uptrend.