Crypto analyst Peter Brandt has issued a bearish outlook for Cardano (ADA), highlighting a critical downturn as the cryptocurrency’s price dips below the crucial $1 support level. This drop, coinciding with Bitcoin’s recent decline, reflects broader negative market sentiment. Despite the optimism seen last month, ADA’s price now faces significant short-term pressure, and analysts are warning of potential further losses.
Peter Brandt’s Bearish Prediction for ADA
Peter Brandt has pointed to a “head-and-shoulders” pattern on ADA’s recent chart, suggesting the cryptocurrency could face a drop to as low as $0.91. This technical pattern indicates a potential reversal in the trend, signaling that ADA is struggling to maintain upward momentum in the face of increasing market selling pressure.
The price decline followed the Federal Reserve’s recent 25-basis-point rate cut. Although this was in line with market expectations, the suggestion of fewer rate cuts in 2025 created a ripple effect in the cryptocurrency market. Bitcoin’s dip below $100,000 and ADA’s struggle near critical support levels highlight the challenges facing the market.
Whale Activity and Market Sentiment
Data indicates a dramatic drop in large ADA transactions, a sign that whale activity is waning. On December 2, large ADA transactions totaled $15.8 billion, but by December 18, this figure plummeted to just $2.9 billion—reflecting a $13 billion decrease. This reduction in demand from major investors suggests that ADA’s support levels could be under further strain, leaving the cryptocurrency vulnerable to additional losses.
Cardano’s Price Outlook: $0.5 or a Reversal?
At the time of writing, ADA is trading at $0.885, having dropped by 5% over the last 24 hours. The MACD indicator shows bearish pressure, with both the MACD and signal lines remaining in negative territory. This suggests that sellers continue to dominate the market. However, the narrowing histogram could signal weakening bearish momentum, raising the possibility of consolidation or a potential upward reversal.
If the bearish trend persists, ADA could breach the $0.8 support level and possibly dip further to $0.7 or even $0.5. On the other hand, a reversal in sentiment could see ADA rally back toward the $1 mark and attempt a retest of the critical $1.10 resistance.
Also Read: Cardano (ADA) Price Plummets Below Key Support – Is $0.70 the Next Target?
Cardano’s price is under significant bearish pressure, with analysts watching key support levels around $0.8 closely. The future direction of ADA’s price will depend largely on the broader market trends, whale activity, and the overall sentiment in the cryptocurrency space.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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