Altcoin season seems to be in full swing — while Bitcoin (BTC) has struggled to breach the $100,000 price point and retreated to $95,546, as of press time, cryptocurrencies with smaller market caps have not faced similar headwinds.
In this environment, many traders divert their attention, choosing instead to focus on either altcoins or meme coins. This is a valid strategy — but several of the more established altcoins are showing strong technical signals as we enter into December. Potentially, this could lead to a best-of-both-worlds scenario — netting investors outsized gains without the large degree of volatility often seen with as-of-yet unproven assets.
One such cryptocurrency is Cardano (ADA). Although it had been on a steady downtrend from March, the beginning of November saw prices go parabolic with the token breaking back into the top 10.
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At press time, ADA was trading at $1.10 — over the course of the last thirty days, Cardano prices have surged by an impressive 207.07%, bringing year-to-date (YTD) returns up to 84.74%.
While impressive, current prices are still quite a ways away from ADA’s all-time high (ATH) of $3.09. However, one technical analyst sees signs of a double-digit correction in the making — which could derail ADA’s impressive bull run.
Chart expert foresees that ADA prices could drop to $0.88
There are several indications that Cardano could experience a steep decline to $0.88, equating to a 20% correction, in short order. Most notably, looking at recent price action reveals that ADA has formed a rising wedge pattern beginning on November 22, as detailed by renowned trading expert Ali Martinez in an X post on December 2.
The rising wedge is a bearish reversal pattern — indicating that a hitherto-present uptrend could change. As seen in the chart, ADA has struggled to break through the upper trend line — per Martinez, if it closes below $1.10, a trend shift will be confirmed — if it drops even further, below $1.03, a bearish breakout to $0.88 will have been confirmed.
In addition, he noted that the TD Sequential, an indicator of price reversals, presented a sell signal when looking at a 3-day chart in an earlier X post.
This isn’t necessarily a cause for concern — Martinez did not indicate that his long-term views on ADA have shifted — and they are quite bullish. The analyst has previously indicated that Cardano could reach a new all-time high of $6 between July and September of 2025, based on previous cycles.
This would represent a 445% rally — and if both of his predictions come to pass, this potential correction could serve as a great entry point. Other market commentators have noted that whales have been quite bullish on ADA — another sign of good long-term prospects.
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