Cardano price could sharply decline to 30%, as an analyst’s recent assessment reveals a ‘grim’ outlook. The bearish outlook for ADA price comes days after the conclusion of the Dubai Cardano Summit, in which sessions discussed the role of this network in building a more secure and functional blockchain ecosystem.
Despite the bearish outlook, the ADA price has been up 0.4% in the last 24 hours and is trading at $0.3344. Cardano is also down 8.9% for the week, and its 24-hour trading volume of ADA is down 14%, signaling a recent drop in market activity and further confirming the bleak future in store for the price of Cardano.
Why A 30% Cardano Price Crash Is Possible
A crypto analyst Skinny has said the price of ADA looks ‘grim’. He noted that Cardano has not yet hit the bottom against Bitcoin (BTC) or Tether (USDT). He noted a bearish continuation in the price charts and predicted the next stop at $0.23. This marks a 31% Cardano price crash from the current value. Meanwhile, the rest of the crypto market is green as BTC price sustains above $67,500.
The current market sentiment for Cardano is largely bearish, as traders remain cautious of the current price action. Data from Santiment shows ADA social volume has been dropping since October 24. This indicates a diminishing public interest in Cardano, which can precede a price decline.
Furthermore, the Cardano funding rate has mostly flatlined since October 14, while on October 22, Open Interest (OI) dropped to a five-month low. A stagnant funding rate suggests the market sentiment hasn’t shifted significantly in either direction. Surprisingly, the OI dropped around the Buenos Aires Cardano Summit, in which Founder Charles Hoskinson said ADA will overtake Bitcoin and Ethereum in a decade.
The dropping OI means fewer traders are holding positions. Combined, these on-chain metrics suggest increased volatility as the market tries to find a new balance. According to data from the Coinglass Liquidation Map, there are about 4 times as many ADA Shorts ($26.71 million) as Longs ($6 million) in the weekly timeframe. This imbalance suggests a bearish outlook dominates the markets as traders anticipate a Cardano price crash.
The Cardano community remains bullish on their project, with some analyst calling for a $3 price tag on ADA, and some predicting it could go as high as $14 and even $16 in this bull run.
ADA Technical Analysis: 20% Gains or 30% Loss
Cardano price is currently stuck within a three-month range, after testing the resistance twice and the support three times. While the range-bound movement offers hope for investors, the bleak on-chain metrics and traders’ behaviors suggest a potential breakout to the downside.
Key support levels currently lie at $0.31, which coincides with the range’s demand zone. On the flip side, the immediate resistance is situated at $0.37 and, beyond that, $0.41, which is also in the range’s supply zone.
The overall analysis for the Cardano price is bearish; however, bulls can drive the price higher and breach $0.41 resistance, signaling market strength, as ADA would surge to $0.45, invalidating the current bearish thesis.
Frequently Asked Questions (FAQs)
Factors like declining social interest, stagnant funding rates, and a high number of short positions contribute to this bearish outlook.
While the primary outlook is bearish, if bulls can push ADA above the $0.41 resistance, it could suggest renewed strength and potentially negate the bearish forecast, allowing the price to reach higher levels.
While the summit highlighted Cardano’s potential in enhancing blockchain security, it had little effect on price stability. Instead, ADA has shown bearish signs post-summit, with trading volume and social interest in decline.
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Evans Karanja
Evans Karanja is a crypto analyst and journalist with a deep focus on blockchain technology, cryptocurrency, and the video gaming industry. His extensive experience includes collaborating with various startups to deliver insightful and high-quality analyses that resonate with their target audiences. As an avid crypto trader and investor, Evans is passionate about the transformative potential of blockchain across diverse sectors. Outside of his professional pursuits, he enjoys playing video games and exploring scenic waterfalls.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/will-cardano-price-crash-30-top-trader-says-analysis-looks-grim/
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