ADA needs to hold this level to avoid falling to $0.5 – Cardano price analysis

Cardano is one such crypto-asset that has closely followed Bitcoin in terms of price action and is currently experiencing a similar pullback to BTC.

By Edris Derakhshi (TradingRage)

The USDT Paired Chart

On the USDT-Paired chart, the asset began its aggressive rally in early November, breaking the 200-day moving average to the upside. Since then, multiple resistance levels have been broken, but the $1.2 level has rejected the asset on a couple of occasions.

The failure of the market to continue beyond the $1.2 level has led to a correction towards the $0.75 support zone, successfully avoiding a deeper decline. If this level holds, it could only be a matter of time before the ADA rises above the $1.2 mark. However, a breakdown of this area could lead to a drop towards the 200-day moving average, located around the $0.5 level.

The BTC paired chart

On the ADA/BTC daily chart, it is clear that Cardano has outperformed Bitcoin during the recent crypto rally, but is also depreciating against BTC on a broader scale. With the 1000 SAT support level close to the downside, the ADA/BTC chart is likely to decline towards the 200-day moving average, located around the 700 SAT mark.

Therefore, as the chart suggests, BTC is likely to surpass ADA in the coming weeks.

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