Cryptocurrency analysts are once again focusing on Cardano (ADA) as they discuss its potential future trajectory. The recent analysis by Alan Santana has outlined a bearish narrative for the crypto token, suggesting a significant price drop could be on the horizon.
Santana pointed out that ADA’s breakout below the $0.58 support level after five weeks signals a bearish sentiment towards the token. He predicted a potential further dip in price, with a possible range between $0.4444 and $0.3450. Despite the recent 30% decline from its peak, Santana highlighted that such corrections are not uncommon in the altcoin market.
Looking at the technical chart shared by Santana, it is evident that ADA could potentially drop to as low as $0.34, aligning with the 0.786 Fibonacci retracement level. The analyst also noted a break below the EMA10 on the weekly chart, along with a bearish candle and a red RSI, indicating a strong bearish trend.
Interestingly, Cardano’s founder, Charles Hoskinson, remains optimistic about the ecosystem despite the price struggles. In a recent social media post, Hoskinson emphasized his belief that “Cardano always wins,” showcasing his confidence in the network’s long-term potential. He has previously compared Cardano to Bitcoin, highlighting its organic growth and real network value.
At the time of writing, ADA is trading around $0.56, experiencing a 2% decline in the past 24 hours. This downward trend in price has raised concerns among ADA holders, as the network value of Cardano has yet to substantially impact ADA’s price performance.
The bearish case for Cardano (ADA) presented by Alan Santana raises concerns about the token’s future trajectory. Despite founder Charles Hoskinson’s confidence in the network, ADA’s price struggles and technical indicators suggest a potential further decline in price. Traders and investors are advised to conduct their own research and exercise caution when making investment decisions in the volatile cryptocurrency market.
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