Cardano is usually pronounced to be dead, as the token’s volatility has been grounded very frequently. The monotonous price movement has made the traders extremely furious, who have now shifted their focus to the other tokens. Ever since the start of the recent rally during Q4 2023, new altcoins have displayed their strength compared to that of traditional assets. As a result, altcoins such as Cardano, which have instilled choppy price action regardless of market sentiment, may be cause for concern for the crypto.
As the token broke out of a year-long consolidation in October 2023, it was believed that the ADA price would reach $1 before the end of the year. However, as the bulls displayed their weakness, more bearish scenarios came into play. However, the latest trend reversal has induced some bullish expectations, but until it gets validated, the probability of rejection continues to hover over the rally.
Observing the chart, it appears that the price has been in extreme consolidation for over a year below the pivotal resistance. Therefore, the breakout pushed the price beyond the 2023 highs, which also offered a strong base during the recent fallout. Although the price dropped below the ascending trend line, the rebound initiated at the base has induced the required momentum within the crypto. With this, the possibility of the token maintaining a healthy upswing for the rest of the month emerges.
Currently, the ADA price is trading within the pivotal resistance and support levels at the 50-day & 100-day MA levels of $0.55 and $0.47. Therefore, a breach beyond any of the levels may certify the next course of action. However, the RSI is incremental, suggesting the trend remains towards the north. This could enable a rise beyond the 0.618 FIB levels to reach 0.78 at $0.6 sometime later, in February 2024.