The general bearish sentiment for Cardano (ADA) It continues to rise, with analysts now predicting a massive 33% increase. price drop for the altcoin. This pessimistic projection comes as ADA struggle to gain traction in the marketits value remaining stagnant or constantly falling to lower levels.
A Cardano (ADA) crash is coming
Compared to other prominent altcoins in the cryptocurrency market, Cardano has been performing poorlystruggling with falling prices and slow growth. Accordingly, a cryptocurrency analyst, identified as ‘Financialfreedomgoals’ on TradingView, provided that The cryptocurrency is likely to experience a drop of more than 30% to reach new lows.
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The analyst highlights the broader negative state of the current cryptocurrency market, noting that most altcoins are stuck in a “bearish rut.” He revealed that rather than reaching new historical highsThese coins have been hitting new lows, underscoring the persistent downtrend and lower confidence among investors.
Cardano, in particular, has had its share of Negative sentiment and volatilityThe cryptocurrency has remained firmly below the 200 exponential moving average (EMA) line, a key technical indicator that traders often use to gauge long-term trends. Typically, when a cryptocurrency’s price remains below this line, it usually signals the continuation of a downtrend.
Given the current situation bearish market stateThe cryptocurrency analyst has dismissed the idea of a Upcoming Altcoin Seasonwhere most cryptocurrencies, excluding Bitcoin, are experiencing significant price gains.
On the daily timeframe, Cardano is trading below the 200 EMA line and the downtrend line. Initially, a rising wedge pattern had formed on the cryptocurrency’s price chart, however, instead of breaking out, Cardano saw a series of negative candles along with a bearish crossover at the moving average convergence divergence (MACD).
This series of negative indicators suggests that Bears may be tightening their grip on the price of Cardano. As such, the cryptocurrency analyst predicts that ADA continues its decline reach new lows in the target zones: 0.2506 or 0.2197. These targets are calculated using the Fibonacci retracement ratios of 1.272 and 1.618.
Resistance at 0.3815 could trigger a bullish surge
Despite maintaining a largely bearish stance on Cardano’s price outlook, Financialfreedomgoals has hinted at a potential bullish changeHe has suggested that a reversal in ADA price could be possible if the cryptocurrency’s price manages to break above the key resistance at the 0.3815 Fibonacci level.
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Cryptocurrency analyst Sssebi shares an even more bullish outlook for Cardano. highlights that during the previous bull market, the value of ADA increased by more than 100 times. As a result, the analyst believes that ADA will join by at least 20x in this current market cycle, expressing even stronger confidence that the cryptocurrency will hit $5 soon.
At the time of writing this, the ADA Price is trading at $0.3576, reflecting a significant increase of 11.39% over the past week, according to CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com
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