Cardano price could suffer a harsh reversal, crypto analyst warns

Cardano price performed strongly in November, benefiting from a broader crypto bull run.

Cardano (ADA) coin jumped by over 220% during the month, making it one of the best performers. Its market cap jumped to $38 billion, bringing it back to the top ten biggest cryptocurrency. 

Cardano’s rally was mostly because of the momentum in the crypto industry after Donald Trump won the general election. As a result, analysts expect that there will be a spot ADA ETF, possibly in 2025. 

ADA will also benefit from the light-touch regulations by the Trump administration. Rumors are that Trump will appoint Paul Atkins, a veteran regulator who has represented several crypto companies, as the next head of the U.S. Securities and Exchange Commission.

Cardano’s surge also happened as Charles Hoskinson hinted that he was about to do a deal with SpaceX. He did that by sending an X post with him standing next to a SpaceX rocket. Days earlier, he said that he was about to do the biggest deal of his career. 

Meanwhile, Cardano’s delegates in Nairobi and Buenos Aires will vote for the network’s constitution. This will be a major event that has not been done by any other layer-1 or layer-2 network in the cryptocurrency industry. It is also a good way to ensure the decentralization of the network.

Cardano price also jumped after the network’s total value locked in its ecosystem jumped to a record high of over $600 million.

Still, some analysts believe that the ADA price could be ripe for a brief correction in the next few days. Ali Martinez, one of the most popular crypto analysts on X, noted that the coin would crash to $0.88, a 20% drop from the current level. He cited the fact that the TD Sequential indicator was pointing to a sell on the three-day chart.

Cardano price chart points to a brief pullback

The daily chart shows that the ADA price has been highly bullish in the past few months. It formed a golden cross pattern as the 200-day and 50-day Exponential Moving Averages crossed each other on Nov. 14. 

Cardano moved above the important resistance level at $0.8078, its highest swing on March 14. That price was the upper side of the cup-and-handle chart pattern.

Cardano’s Relative Strength Index and Stochastic Oscillator have moved to the overbought level. The MVRV indicator has moved to 2.8, meaning that it is not all that higher above the market value.

ADA price has formed a rising wedge pattern, pointing to a potential reversal, potentially to $0.80.