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.

ADA/USDT Price Chart

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.

Cardano Liquidation Map by Coinglass

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.

Cardano Price Analysis Chart

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.

The post Will Cardano Price Crash 30%? Top Trader Says Analysis Looks ‘Grim’ appeared first on CoinGape.

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Filed under: News - @ October 28, 2024 5:23 am