Cardano (ADA) Risks Dropping 33% to $0.2197, Analysts Predict

On Monday, Cardano (ADA) recovered to $0.3484, rebounding almost 11% after falling to $0.3147 just three days before.

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Cardano (ADA) price opened the week on a positive note, rebounding almost 11% from the lows of $0.3147 seen just three days ago. However, as ADA struggles to maintain its bullish momentum, the gains are quickly fizzling out.

Currently, ADA trades close to the crucial level at $0.3544, up 4.55% on the daily chart. The daily timeframe shows that ADAUSDT is in a bearish period. But, given the overall cryptocurrency market’s sideways movement, it seems to be in a consolidation phase. As it has formed a range below the 0.35 resistance, the price may drop to retest the support levels.

The bearish outlook was also highlighted by specialist Lingrid as the choppy prices raised concerns.

Lingrid Suggests Shorting Cardano (ADA)

In the latest report, Lingrid highlighted that ADA looked vulnerable as it approached and consolidated below the key $0.35 support. The specialist noticed that the overall cryptocurrency market is still moving sideways, and having failed to breach the range that is present at the moment, ADA experiences additional pressure to the downside.

Looking at it from a daily time scale, Lingrid realized that ADA is currently stuck between $0.30 and $0.34. In the daily chart, a doji candle has formed, which usually indicates that the market is not confident in either direction. Lingrid believes that if this is the scenario that the market is looking for, then there may be some retest of support levels around $0.325 or in that area.

Even if traders may find chances when the price stabilizes inside the current range, the attitude is still adverse.

Moreover, ADA risks dropping further lower toward the $0.30 region if it is unable to maintain above the $0.325 support, according to Lingrid’s analysis. In conclusion, Lingrid simply gave ADA a short signal.

Analysts predict that ADA is going to drop 33% to $0.2197

Another highly bearish price analysis was given by analyst FinancialFreedomGoals in her analysis of ADA. In this view, she highlighted that a majority of cryptocurrencies, including Cardano, are locked in a bear market.

With more trading volume, ADA just broke out of its rising wedge, although this was not the positive breakout that many had expected.

The analysis shows that Cardano is strengthening the strong bearish trend on the daily chart by closing the gap below the EMA200 line and the bearish trendline. A rising wedge pattern developed, but a string of strong bearish candlesticks whacked it before it could break out.

Moreover, the MACD has included a bearish crossing for good measure to spice things up. Not quite what the bulls were looking for, Cardano just suffered a tumble, breaking out of the rising wedge with a jump in trade volume.

Even worse, the MACD line was below the signal line, which showed that the bears were becoming even more bearish.

As all of these indicators are bearish, FinancialFreedomGoals is projecting a likely slide into target Area 1 at 0.2506 or a more profound fall in Target Area 2 at 0.2197, which are plotted by using the Fibonacci ratios of 1.272 and 1.618.

However, the analyst pointed out this keeps changing; hence, if ADA price goes over the resistance level at 0.3815 then bulls can have some hope.

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