Will Cardano Drop to $0.3 Next?

Analysts from Cheeky Crypto are optimistic about a Cardano drop to $0.3 based on the current market dynamics. 

The analysis highlighted bearish technical indicators, such as a series of lower highs and lower lows, suggesting a downward trend in the market. According to the analyst, there is the absence of overlapping candlestick patterns and a potentially more profound decline based on Elliott Wave Theory, which could see ADA drop to as low as 30 cents. This aligns closely with calls from More Crypto Online analysts who also predicted a drop to $0.29.

During the video, the analyst discussed the current bearish setup. ADA closed below the 200-day Exponential Moving Average (EMA) on the daily chart, indicating bearish sentiment. This price action below critical moving averages such as the 50 EMA and 50-day Simple Moving Average (SMA) reinforces the downtrend. Despite this, the analyst proposed that a relief rally might be possible, although the overall outlook remains bleak.

In contrast, some parts of his analysis were more optimistic regarding long-term prospects. The analyst described the recent price drops as opportunities for investors to engage in dollar-cost averaging and build more prominent positions in ADA. Even with the prevailing sell pressure in the short term, his analysis suggested that an intelligent money concept aligns with a likely significant bounce, indicating a great buying opportunity.

However, he states that if a five-wave pattern to the downside is completed, it could place Cardano in a precarious position, signaling the potential for further losses. Despite the bearish indicators and market pressures, the analyst’s long-term bullish outlook reflects confidence in Cardano’s fundamentals and its community’s resilience. Other analysts also speculate that a Cardano breakout could soon be here. 

Cardano’s Market Outlook: How Is ADA Doing Today?

The Cardano price chart shows that it still forms a symmetrical triangle, a continuation pattern. The pattern indicates that the market is consolidating, and a breakout on either side is imminent. The Volume Oscillator shows a decrease in volume, typical during the formation of a symmetrical triangle, as it reflects the decreasing activity and indecision among traders.

2-hour ADA/USD Chart | Source: TradingView

On the other hand, the Money Flow Index (MFI) is hovering around the 44.14 mark, which is slightly below the neutral 50 level. This suggests no strong buying or selling pressure, aligning with the consolidation phase indicated by the triangle pattern. However, as both the Volume Oscillator and MFI move, it could indicate some building selling pressure. According to stats from CoinMarketCap, Cardano was trading at $0.4488 as of 12:20 p.m. UTC, showing a slight decrease of 3.06% over the past day.