Cardano Loses 25% in 3 Days: Is This a Buying Opportunity?

Cardano (ADA) has seen a strong rally since early November, reaching the upper edge of a megaphone chart pattern. However, after recent gains, the large-cap altcoin has pulled back by about 25%, trading at around $1.01 on Tuesday, December 10, during the mid-London session.

With a fully diluted market value of $45.5 billion and an average daily traded volume of $4.4 billion, Cardano’s price movement is attracting attention.

This price volatility has caused significant liquidations in Cardano’s leveraged market. In the past 24 hours, more than $24 million was liquidated, mostly from long traders. Additionally, Cardano’s Futures Open Interest (OI) has fallen by over 26%, dropping to around $832 million at the time of writing.

Cardano Price Analysis

As the altseason continues, fueled by capital rotation from Bitcoin (BTC), Cardano has become a popular choice for whales. However, ADA is facing a key support level around $1. After losing the $1.2 level, where 93,000 addresses bought more than 2.5 billion ADA, Cardano must maintain this $1 support to avoid a further drop toward 81 cents.

It’s Looking Bullish!

Crypto analyst Ali Martinez believes Cardano’s price is following a similar pattern to its 2020/2021 bull cycle, meaning ADA could remain a solid “buy zone” even if it falls below 80 cents.

Martinez is confident that ADA will reach new all-time highs in this bull cycle, with a target range of $4 to $6.

Curious about the future of Cardano’s price? Check out our Cardano price prediction for expert insights and stay ahead of the market!

Cardano’s Strong Fundamentals

The recent rise of ADA is heavily bolstered by the victory of President-elect Donald Trump, whereby Cardano founder Charles Hoskinson has been working closely with the transition team to ensure crypto-friendly regulations. 

The total value locked (TVL) on the Cardano network has risen to over $555 million and more than 54k daily active addresses.

In a market full of unpredictability, Cardano stands out, holding its ground as it prepares for whatever comes next.

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