The cryptocurrency market is witnessing a significant correction in Cardano (ADA) prices, with the token experiencing a sharp decline to $0.9, representing a 24% decrease in the past 24 hours. This downturn comes after an impressive 216% surge in November, raising questions about the sustainability of ADA's recent rally.
Why Is Cardano Price Down Today? The Biggest Daily Slump Since 2021
During Monday's session, ADA's price dropped nearly 16%, closing the day at $1. Intraday declines were even steeper, reaching a local low of $0.91. This represented a temporary 24% loss for Cardano, marking the largest single-day drop in over three years, since September 2021, when ADA's price fell by 30%.
Today, Tuesday, December 10, 2024, ADA's price is seeing a slight correction, up 1.3%. Currently, Cardano is trading at $1.02 on Binance. However, the recent drop significantly impacted Cardano's total market capitalization, which now stands at $35.6 billion, pushing the token to the ninth position among the largestcryptocurrencies by market cap.
Despite the decline, investor activity remains robust, with daily trading volume at $3.8 billion, exceeding that of Binance Coin (BNB), which is currently the sixth-largest token in circulation.
Current Market Status
The price correction in Cardano reflects broader market dynamics and profit-taking behavior. After reaching significant highs, ADA is showing signs of exhaustion as traders engage in profit-taking activities. The Relative Strength Index (RSI) has exited overbought territory, suggesting a cooling period for the asset.
However, Cardano isn't the only cryptocurrency experiencing a decline. Ripple's XRP token also recorded its steepest drop in two months during a single session. A similar fate befell meme coins, including Shiba Inu (SHIB), which is undergoing a significant correction in price.
Cardano Price Technical Analysis
Recent technical analysis reveals that Cardano is testing critical support levels. The token's price action has formed bearish patterns, with increased selling pressure from short-term holders.
Looking at the ADA/USD chart, the price has stalled around the $1.25 level, which aligns with local highs from April 2022, and is currently stuck in a consolidation phase between this level and the $0.90 support.
As long as these two levels hold, I would expect the upward trend to continue. My outlook will only change if the support zone, additionally reinforced by the 23.6% Fibonacci retracement, is breached. In that case, it could open the door to further levels marked on the chart and described in more detail below.
I believe any dips would present opportunities to accumulate ADA at lower and more attractive prices. A break below $0.68, however, would shift my perspective to a more bearish outlook.
Technical Support and Resistance Levels
Key Support Zones:
- $0.9176 – 23.6% Fibo retracement
- $0.9 – psychological support line
- $0.8 – local highs from March 2024
- $0.68 – local highs from December 2023
- $0.3 – lows from 2024
Resistance Areas:
- $1.1 – local high from November 2024
- $1.25 – current main resistance zone, highs from November and December
- $1.32 – intraday high from late November
- $1.3349 – 38.2% Fibo retracement
ADA Volume Analysis
Trading volume analysis indicates significant liquidations at higher price levels. Over the past 24 hours, $1.6 billion has been wiped from the market, with $1.4 billion coming from leveraged long positions. Larger tokens account for most of this movement, though ADA also has a visible share. In total, $23 million was liquidated from leveraged positions in Cardano during the day, $20 million of which came from longs.
Fundamental Factors Behind the Cardano Price Drop
Profit-Taking Pressure
The primary driver of the current price decline is widespread profit-taking following ADA's substantial gains. After climbing over 114.5% in the past year, investors are naturally securing their profits, creating downward pressure on the price.
It is worth also noting that Bitcoin did not sustain its position above $100K mark, which also heightened the current selling preassure.
Market Sentiment Shift
Recent events have impacted market sentiment:
Looks like the CF account got hacked. Try harder hackers https://t.co/DhT9PpgfZt
— Charles Hoskinson (@IOHK_Charles) December 8, 2024
- The broader cryptocurrency market correction has affected altcoin performance
- Technical indicators suggesting overbought conditions triggered cautious trading
Cardano Price Prediction: Future Price Outlook
Short-Term Projections
The immediate price trajectory appears challenging, with analysts predicting potential consolidation in the coming weeks. Current technical indicators suggest ADA could experience further correction before finding stable support.
Long-Term ADA Price Forecast
Despite short-term volatility, long-term projections remain optimistic:
- 2025 predictions range from $0.8 to $2.5
- 2026 forecasts suggest potential growth to $3.1
- 2027-2030 projections indicate gradual appreciation toward $5.5
You can find more Cardano price predictions for 2025 and 2030 here. Finance Magnates has also prepared forecasts for other cryptocurrencies, including Dogecoin, for the year 2025.
Our Cardano $ADA price prediction of $6.00 might surprise you. From what we can see, Cardano just might be mirroring its performance from previous cycles. What do you think????? pic.twitter.com/0Aqy4YdoaM
— ALLINCRYPTO (@RealAllinCrypto) December 2, 2024
Risk Factors
- Several elements could influence future price movement:
- Overall cryptocurrency market conditions
- Regulatory developments
- Technical breakthrough implementations
- Institutional adoption rates
Should You Invest in Cardano (ADA)?
The platform continues to evolve with technological advancements and ecosystem developments, which could positively impact future valuations. Network improvements and increasing adoption rates remain crucial factors for long-term price stability.
WhileCardano's current price correction might concern some investors, it represents a natural market cycle following significant gains. Technical indicators suggest a period of consolidation, but fundamental strengths remain intact. Investors should consider both short-term volatility and long-term potential when making investment decisions.
The combination of technical analysis, market sentiment, and fundamental developments indicates that while ADA may experience continued pressure in the near term, the overall trajectory maintains positive momentum for future growth. However, as with all cryptocurrency investments, careful consideration of risk factors and market conditions remains essential.
Cardano Price Prediction, FAQ Section
Why is the Cardano price low?
Cardano's recent price movements reflect profit-taking after a 168% surge over the past month, with the price currently at $1.02. The market is undergoing a natural correction phase following this substantial growth.
What is happening with ADA Cardano?
ADA has reached a market cap above $40 billion for the first time in three years, with futures open interest hitting a 40-month high of $1.18 billion. The network's Total Value Locked (TVL) has significantly increased from $230 million to $705 million in December 2025.
Will ADA recover from current levels?
Technical analysis and market experts predict ADA will continue its growth trajectory, with forecasts suggesting prices between $1.21 and $1.34 by the end of December 2024. Long-term projections indicate potential growth to $2.76 by 2025.
Is Cardano expected to go back up?
Market analysts maintain a bullish outlook, with predictions for 2024 ranging between $1.21 and $2.02. Factors supporting this growth include increased whale accumulation, network developments like the Hydra protocol, and growing DeFi adoption.
This article was written by Damian Chmiel at www.financemagnates.com.
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