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In a financial market, the process of a market correction is one of its essential aspects, though it’s a different story when it comes to the realm of cryptocurrency. Mainstream digital assets like bitcoin (BTC) and ethereum (ETH) have recorded steep plunges this past week. However, for Cardano (ADA), it has been described by crypto analysts as a regular affair since the start of September.
A lot of the altcoins in the market have bathed in a profitable period in October, though Cardano hardly managed to bounce back on top of the $2.30 mark. That said, ADA may well seem to be heading to its so-called final turn and anything beyond a trend reversal could spell problems for Cardano.
Cardano’s two rallies
To better comprehend the necessity of the altcoin’s consolidation range as of late, it is essential to examine the previous two rallies for ADA. Its first rally that has taken the altcoin to $2.47 began back on September 24, 2020, as the market top was achieved on May 15 of this year. Enter the corrections, and it took Cardano’s price downtown to $0.99.
On Cardano’s next rally, the altcoin recorded its daily bottom of $1.02 on July 20, 2021. Further, it was learned that such momentum was very much assertive during the said price surge as a new all-time high level was achieved back on September 3 sitting at $3.01. Cardano has encountered drastic corrections moving forward as it dodged the majority of the collective bullish momentum.
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Similarity
A notable resemblance between the above-mentioned rallies is that Cardano came back to a bullish reversal from the Fibonacci level of 0.618. Further, during any corrections within the bullish stage, the 0.618 Fibonacci level is being viewed as the final level following which, Cardano needs to move in a positive direction.
At the time of writing, Cardano’s Fibonacci is at $1.81. For the uninitiated, it’s saying that it is at its endmost threshold of support.
Additional information states that investors who are in the middle of the $1.58 and $2.14 range are as of late at a “majority state of loss.” As of publication, nearly 30% of the addresses were in the money, while 70 percent of these addresses are out of it.
Given that December is still being anticipated to be bullish, investors should be checking at such a level in the coming days. This is since this could be the final purchasing chance for Cardano before it undergoes a breakout trend.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
