Cardano can still rally to higher prices, but analysis suggests it would have to hold a key support level for the upward push to materialize.
Prominent market commentator Ali Martinez highlighted this in a recent X analysis, raising optimism among Cardano holders amid the ongoing market capitulation. ADA has continued to fall, mirroring the broader trend, but the top chartist is not ruling out a rebound yet.
With Ethereum losing the $4,000 price mark, Cardano has corrected 3% in the past 24 hours, currently trading at $0.79. Overall, ADA has dropped 12.6% over the last seven days, entirely wiping out its gains this year.
The support had previously contained bearish price escalation for Cardano earlier in the month when it fell to $0.78. The token consolidated around the support before rallying to the resistance area at $0.95 on September 13.
Martinez believes a similar event would occur if ADA simply held the support. Meanwhile, the token currently trends at $0.793, slightly lower but still within range. If bulls step in and prevent lower prices, then Cardano could rally nearly 20% from here to retest the resistance at $0.95.
Aligning Cardano Outlook
Meanwhile, Crypto T also shares a similar view on Cardano’s current price action. The analyst highlighted that ADA has now retested the support level at $0.787, which aligns with a descending trendline on the 1-hour chart.
He noted that Cardano needs to hold its current level to rebound. If it stays above the support trendline, the market watcher believes the following resistance targets are $0.814 and $0.824.
Bearish Case for Cardano
Nonetheless, the possibility of Cardano seeing lower prices still exists, according to WiverRiders. The analyst identified a double-top formation on the ADA chart, indicating an extended bearish trend for the token.
The two tops formed at $0.954 and $0.935 on September 13 and 18, respectively. Remarkably, prices have since declined extensively, and the analysis predicts further downside from the current market prices. Specifically, the commentator’s target for the bearish formation is $0.768, which is barely 3% away from this level.
