Cardano‘s (ADA) price has experienced a 7.75% drop in the last 24 hours. ADA found significant support on December 13th at the EMA 7 level and has risen to $0.6095 while this article is being written. We are examining the reasons behind the fluctuations in Cardano’s price.
After reaching its highest level in 18 months at $0.64 on October 9th, the drop in ADA’s price drew attention as part of a correction cycle. Investors began taking profits when the Relative Strength Index (RSI) on short-term charts entered the overbought zone, rising above 70.
An RSI above 70 indicates that the traded asset is overvalued and suggests that the trend could reverse or that a corrective pullback might occur. ADA experienced a correction pullback, moving within a triangular formation bounded by support and resistance lines on the four-hour chart.
The increase in volatility in Cardano on December 13th coincided with a slight decline in the ADA supply held by addresses owning over a million tokens. It is suggested that these whales influenced ADA’s short-term price trends during the same period when Cardano’s price saw a 50% increase.
The flag pattern observed in Cardano’s four-hour chart is seen as a potential sign of the continuation of an upward trend. In summary, if ADA’s price breaks above the upward flag pattern, it has the potential to reach approximately $0.81 with a 40% increase in the two weeks leading up to the end of the year.