In the recent market landscape, Cardano (ADA) has faced persistent challenges in stabilizing above the $1 mark, following a broad correction that impacted the crypto sector over the past week. This downward adjustment saw Cardano slip below the psychological threshold of $1 on December 18.

Despite a long-term trend suggesting potential highs, current technical analysis indicates a likely continued dip toward $0.43 before a robust upward trajectory resumes.

Cardano has encountered formidable resistance around the $1.2046 level. This follows a substantial 205% ascent, from $0.4322 in late October to a peak of $1.32 by late November.

During this period, Cardano developed significant support levels at its lows and entered the overbought territory on the Relative Strength Index (RSI), peaking at 82.87. Currently, the market is witnessing a corrective phase with buying pressure stabilizing. Observations point to significant volumes, suggesting potential future directions for ADA.

While optimism prevails in the long-term outlook for Cardano, analysts caution about a deep correction phase. ADA could retrace further, testing key support levels if the downtrend continues. Notable support has emerged at $0.7683, a recent reactionary zone.

Beneath this, $0.4322 is identified as critical; maintaining above it is crucial for a bullish trajectory. A breach could precipitate further declines and shift sentiment to bearish. Additional supports at $0.3166 and $0.2427, which stood firm during past bearish cycles, are deemed less likely to be challenged.

Despite the looming correction, Cardano's recent price trends suggest a positive future.

ADA, currently trading at $0.912, has seen a 2% uplift over the last day. Surpassing the $1.2046 resistance could set the stage for Cardano to pursue its $3.09 all-time high, potentially establishing new benchmarks in this cycle.