Cardano Price Action Above $0.850 Signals Potential Reversal

Summary:
• Cardano price has lost nearly 19 percent of its value in the last month, but a reversal is still in the cards if it stays above a key support

Cardano price has suffered a sharp decline in the last month, declining by nearly 19%. The downtrend is exacerbated by a breakout below the psychological $1 mark, which has added more pressure on the asset. However, ADA price has noticeably rejected action below the $0.850 mark in the last ten days, signaling its establishment as a near-term support level.

ADA price risk-reward assessment

ADA traded at $0.871 at the time of writing, up by 1% on the daily chart. Despite its recent losses, the coin’s key fundamentals signals a potential reversal in the coming weeks. According to IntoTheBlock, 71% of investors have held the coin for more than a year.

Notably, ADA price traded below the $1 mark for two-and-a-half years before breaking above that level on November 22. As a result, 60% of ADA coin holders are still “In the Money” despite recent losses. Therefore, a bearish sentiment has not yet set in. Nonetheless, profit-taking could extend the current consolidation, but a near-term reversal remains in the card if ADA price stays above $0.80.

Whales currently hold 29% of the coin’s circulating supply. That makes whale activity pivotal to Cardano price’s potential recovery. However, recent trends signal declining whale interest in the coin. Transactions valued at $100k or more declined from 744 to 443 in the last seven days. A continuation of the trend could add downward pressure on the coin.

Cardano Price Prediction

Pivot: Cardano price pivots at $0.882. The upside will prevail if the price action stays above that level. Conversely, moving below that mark could shift the momentum to the downside.

Resistance: The first resistance is likely to come at $0.910. Clearing above that level could clear the path to test $0.945.

Support: The first support is likely to be at $0.850. Action below that level will invalidate the upside narrative. Extended bearish control could send the price lower to test $0.820.