Cardano (ADA) Price Analysis: Analyst Predicts Potential Drop Before Bullish Rebound

Renowned crypto analyst Alan Santana has provided a detailed analysis of Cardano (ADA) price movement, forecasting a significant drop before a potential bullish surge. According to Santana, the ADA/USDT pair, which has been a staple for many traders over the years, could see a notable decrease in value before rebounding.

Critical Levels Identified for ADA: 25% and 50% Declines Possible

Santana points to a bearish harmonic pattern in Cardano’s price chart, a common and reliable indicator in technical analysis. This pattern suggests a high likelihood of further downward movement. “We’re observing two critical levels for ADA,” Santana explains. “The first suggests a 25% drop, while the second indicates a possible 50% drop.”

While a 25% correction might seem severe, Santana warns that based on historical trends, the more significant 50% drop is also a possibility. This aligns with the tendency of cryptocurrency pairs to test the lowest possible levels before experiencing a substantial upward trend.

Santana outlines several strategies for traders in light of this bearish outlook. Traders can potentially profit from the predicted decline by taking short positions. Alternatively, traders might wait for ADA to establish a solid support level before buying and holding the cryptocurrency for the long term. A more complex approach involves using both strategies, requiring considerable patience and discipline.

Since early December 2023, Cardano has experienced a decline in daily trading volume, with prices steadily decreasing. This trend suggests that a lower low is likely on the horizon, reinforcing the need for traders to prepare for potential further declines.

While the current outlook for Cardano appears bearish, Santana’s analysis provides traders with actionable insights to navigate the market. By anticipating a possible 25-50% drop, traders can make informed decisions to either capitalize on the downtrend or prepare for a future bullish wave.

Analyst Predicts Short-Term ADA Surge

Despite the overall negative outlook, short-term price movements indicate a potential upward trend for Cardano, as noted by crypto analyst Sssebi. According to the analyst, ADA is consistently posting higher highs and higher lows, indicative of a continued strengthening trend. At the moment, another bounce on ADA might lead to it running up again. The target price, according to the analyst, is $0.52 for ADA in the near future.

At the moment, Cardano is at $0.485915. It possesses trading volume in the last 24 hours of $549.60 million and a market capitalization of $17.34 billion. The last 24-hour change in the price of ADA slightly went down by 0.15%.

Related Reading |  U.S. House Vote on FIT21 Bill to Define Crypto Regulations, Impact Coinbase’s Future