Cardano (ADA) has been in a downward spiral over the past week, shedding 11.37% of its value amidst a broader market sell-off driven by geopolitical tensions. Although ADA saw a modest recovery in the last 24 hours, the market sentiment around the coin remains largely pessimistic.
Despite some signs of recovery across the crypto market, including Bitcoin’s 3.5% rebound from $60,000 to $62,142, Cardano’s trajectory appears uncertain. Prominent analyst Alan Santana warns that ADA could experience further declines, potentially falling as low as $0.2367.
Bearish Sentiment Continues – Analyst Predicts ADA’s Next Move
According to Alan Santana’s analysis on TradingView, ADA’s price might drop another 33.4% from its current value of $0.3552. Santana’s bearish outlook is based on Cardano’s recent failure to break key resistance at its 200-day moving average (MA200) during its last upward attempt. This, coupled with declining trading volume and fading bullish momentum, suggests that the token’s downtrend is far from over.
The analyst identified the $0.2367 price range as the base of ADA’s bullish expanding triangle pattern, hinting that this correction could be the final phase of Cardano’s slump. ADA has struggled to maintain upward momentum since its peak in March, when it hit $0.7742, and Santana believes the worst may not be over yet.
Potential Rebound in Q1 2025?
Despite the grim outlook in the short term, Santana sees potential for a significant price recovery once Cardano hits the $0.2367 floor. He suggests that ADA could rally towards $0.4326, breaking through its MA200 resistance. If this scenario plays out, Cardano may target its yearly high of $0.7742 by late Q1 2025.
However, the journey to recovery may be long and gradual. Santana’s forecast aligns with the broader market sentiment, where altcoins like ADA remain vulnerable to the ripple effects of geopolitical events and macroeconomic factors.
Santana isn’t the only analyst projecting further losses for ADA. Analyst Ray Trader previously forecasted that Cardano could plunge to $0.15, a price level last seen in 2021. He pointed to Cardano’s drop below $0.40 as an indicator that bearish pressure remains strong, making the current environment favorable for shorting the asset.
What’s Next for ADA?
As ADA hovers around the $0.35 mark, investors are closely watching for signals of either a continued sell-off or a sustained recovery. While some are betting on a potential rebound in the coming months, the near-term outlook remains cautious. For now, ADA appears to be in a critical phase, with Santana and other analysts predicting more downside before any long-term bullish momentum returns.
Also Read: Charles Hoskinson – Cardano Stands Strong Amid Solana’s Setbacks—ADA Down 12% Year-to-Date
In a market where geopolitical tensions are shaking investor confidence, ADA’s price movement in the coming weeks will be pivotal. Traders should remain cautious and monitor key support and resistance levels closely.
Cardano’s recent correction has fueled bearish sentiment, with analysts predicting further downside in the near term. Alan Santana’s forecast of a drop to $0.2367 underscores the challenges ADA faces, but there may be a silver lining with potential recovery by early 2025. However, as market volatility continues, Cardano investors should brace for further turbulence.
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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