Analysts Warn Cardano ADA Could Face 33% Price Drop Soon

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The overall negative sentiment surrounding Cardano (ADA) is escalating as analysts predict a significant 33% decline in price for this altcoin. This grim forecast arises as ADA struggles to make headway in the market, with its price remaining stable or gradually falling to lower thresholds.

Impending Cardano (ADA) Downturn

In contrast to other major altcoins in the cryptocurrency landscape, Cardano has underperformed, facing price drops and slow growth. As a result, a crypto analyst known as ‘Financialfreedomgoals’ on TradingView, has forecasted that the cryptocurrency may experience a decline exceeding 30% to reach new lows.

The analyst emphasizes the broader negative condition of the current crypto market, pointing out that many altcoins are trapped in a “bearish cycle.” He noted that instead of reaching new all-time highs, these coins have been hitting new lows, highlighting the ongoing downtrend and reduced confidence among investors.

Cardano, in particular, has faced significant negative sentiment and volatility. The digital asset has consistently remained below the Exponential Moving Average (EMA) 200 line, a critical technical indicator often employed by traders to assess long-term trends. Typically, when a cryptocurrency’s price hovers below this line, it indicates a continuation of a bearish sentiment.

Considering the current bearish climate of the market, the analyst has rejected the notion of an emerging altcoin season, when most cryptocurrencies, excluding Bitcoin, experience notable price surges.

On the daily chart, Cardano is positioned below the EMA 200 line and the bearish trend line. Initially, a rising wedge pattern had been established on the cryptocurrency’s price chart, but instead of breaking out, Cardano encountered a series of negative candlesticks along with a bearish crossover on the Moving Average Convergence Divergence (MACD).

This series of negative signals indicates that bears may be tightening their control over Cardano’s price. Consequently, the crypto analyst anticipates that ADA will continue to decline, reaching new lows at target levels of 0.2506 or 0.2197. These targets are derived from the Fibonacci retracement ratios of 1.272 and 1.618.

Resistance at 0.3815 Could Spark Bullish Movement

Despite a predominantly bearish outlook for Cardano’s price, Financialfreedomgoals has pointed to a possible bullish turnaround. He has indicated that a price reversal for ADA might be achievable if the cryptocurrency’s price can break through the crucial resistance at the 0.3815 Fibonacci level.

Crypto analyst Sssebi presents an even more optimistic forecast for Cardano. He points out that during the previous bull market, ADA’s value surged over 100X. Thus, the analyst anticipates that ADA will soar at least 20X in this current market cycle, expressing strong confidence that the cryptocurrency will hit $5 soon.

At the time of this writing, the price of ADA is trading at $0.3576, showing a substantial increase of 11.39% over the past week, according to CoinMarketCap.