ADA’s Outlook: Analyst Predicts a Pronounced Correction in the Near Term

Crypto News- In his recent analysis, cryptocurrency analyst and trader Dan Gambardello issued a cautionary note, suggesting that Cardano (ADA) might be poised for a correction ranging from 20-27%. This prediction follows ADA’s achievement of a higher low on the weekly chart, surpassing the previous ‘swing high.’

ADA’s Outlook: Analyst Predicts a Pronounced Correction in the Near Term

Despite the potential for a substantial pullback in ADA’s value, Gambardello doesn’t dismiss the chance of the cryptocurrency’s price sustaining its upward momentum. In a bullish scenario, he sets an upside target at $0.65. Notably, he points out that ADA has entered the overbought territory, signaling an increased likelihood of a correction. If this technical indicator holds true, ADA could seek immediate support at $0.54 before potentially making a significant downward move.

While short-term corrections seem likely based on ADA’s current charts, Gambardello emphasizes a multi-month upside target at $0.85 that remains in consideration. Acknowledging the time it might take for ADA to reach this level, he notes that the cryptocurrency is still in the process of forming the necessary structure for such a move.

Recent market data indicates a more than 5% decline in ADA’s price over the past 24 hours, bringing it to $0.5551 at the time of writing. Despite this short-term loss, ADA’s weekly performance stands at a positive +35.40%.

Accompanying the price drop, ADA also witnessed a decrease in its 24-hour trading volume. According to CoinMarketCap, the total volume for ADA is reported at $1,298,135,749, marking a 40.39% decrease compared to the previous 24-hour cycle.