Cardano price has faced a sharp reversal, dropping nearly 21% from its highest level this month as investors took profits.
Cardano (ADA) was trading at $0.92 on Tuesday, Nov. 26, giving back some of the gains it made in recent weeks.
This decline mirrors broader trends across the crypto market. Solana (SOL), the first-growing layer-2 network, dropped by 12.65% from its highest level this month. Similarly, Polkadot (DOT) and Cronos (CRO) have fallen by double digits.
Crypto analysts remain optimistic that ADA will resume its bullish trajectory, describing the current dip as a normal retracement in a bull market. Historically, cryptocurrencies often experience minor pullbacks during extended rallies.
In an X post, Dan Gambrardello, who has over 273,000 followers, described the decline as temporary. He predicted that Cardano could reach $5 to $10 when Bitcoin hits $200,000.
With Cardano currently trading at $0.92, a move to $10 would represent a 987% increase. While significant, such growth is not unheard of in the crypto market. Between Aug. 2 and Nov. 23, Cardano surged over 315% and has risen 3,670% from its 2018 low.
In another post, DustyBC, a popular crypto pro, estimated that Cardano will jump to $12 at base.
Fundamentally, analysts believe Cardano will benefit from its expanding ecosystem and potential shifts away from more expensive blockchains like Solana and Ethereum. Speculation around the approval of a spot Cardano ETF by 2025 further bolsters positive sentiment.
Cardano price has more room to run
The weekly chart shows that Cardano has rebounded in recent weeks, hitting a high of $1.1520, its peak since April 2022.
The price has surpassed the crucial resistance level of $0.80, previously its high on March 4. Cardano is now attempting to retest this level as support, a common continuation signal in technical analysis.
Currently, ADA is hovering around the 23.6% Fibonacci Retracement level and remains above the 50-week and 100-week moving averages. Analysts suggest that Cardano could rise to the 50% retracement level at $1.6700, which would mark an 82% gain from its current price.
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