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The overall bearish sentiment for Cardano (ADA) continues to rise, with analysts now expecting a huge 33% price crash for the altcoin. This pessimistic projection comes as ADA is struggling to gain traction in the marketwhere its value stagnates or steadily declines to a lower level.
Cardano (ADA) Crash coming
Compared to other prominent altcoins in the crypto market, Cardano has performed poorlywhich is struggling with price falls and slow growth. Consequently, a crypto analyst on TradingView was identified as ‘Financialfreedomgoals’, predicted That cryptocurrency is likely to crash by more than 30% to new lows.
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The analyst points to the broader negative state of the current crypto market, highlighting that most altcoins are stuck in a “bearish rut.” He announced that instead reaching new record highsthese coins have reached new lows, which the continued downward trend and reduced confidence among investors.
Cardano in particular has had its share of it negative sentiment and volatility. The cryptocurrency has remained steady below the Exponential Moving Average (EMA) 200 line, a key technical indicator that traders often use to gauge long-term trends. When the price of a cryptocurrency remains below this line, it generally indicates a continuation of a bearish trend.
Considering the present bearish state of the marketthe crypto analyst has the idea of one upcoming altco seasonwhere the majority of cryptocurrencies, with the exception of Bitcoin, are experiencing significant price gains.
On the daily time frame, Cardano is trading below the EMA 200 line and the bearish trend line. Initially, a rising wedge pattern had formed on the cryptocurrency’s price chart, but instead of breaking out, Cardano spotted a series of negative candlesticks alongside a bearish crossover on the Moving Average Convergence Divergence (MACD).
This series of negative indicators indicates this bears can tighten their grip on the price of Cardano. As such, the crypto analyst foresees the ADA continues its descent to make new lows in target areas: 0.2506 or 0.2197. These targets are calculated using the Fibonacci retracement ratios of 1.272 and 1.618.
0.3815 Resistance could trigger a bullish wave
Despite Cardano taking a largely bearish stance on the price outlook, Financialfreedomgoals has hinted at a potential bullish reversal. He has suggested that a price reversal for ADA could be possible if the cryptocurrency’s price manages to break above the key resistance at 0.3815 Fibonacci level.
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Crypto analyst Sssebi shares an even more bullish outlook for Cardano. He highlights that during the previous bull market, ADA’s value increased by more than 100x. As a result, the analyst believes ADA will rally by at least 20x in this current market cycle, expressing even stronger confidence that the cryptocurrency will soon reach $5.
At the time of writing, the price of ADA is trading at $0.3576, reflecting a significant 11.39% increase over the past week, according to CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com