Analyst Says Cardano Price Correction Likely Not Over
thecryptobasic.com 05 October 2024 11:33, UTC In a recent analysis, market commentator Alan Santana asserted that the Cardano price correction is likely not over yet.
Cardano has corrected considerably in the past seven days amidst a wider market drawdown due to geopolitical tensions. ADA has relapsed 11.37% in the past week, with a slight increment in the past 24 hours.
Notably, the crypto market has shown signs of recovery in the past two days. For context, Bitcoin has risen 3.5% from its $60,000 lows on Thursday to trade at $62,142, leading to a slight uptrend in altcoins. However, analyst Alan Santana has speculated that the Cardano network’s native token, ADA, will continue its downtrend.
Analyst Predicts ADA Dump to 23 Cents
In a TradingView analysis, Santana speculated that ADA would continue its recent downtrend, targeting the $0.2367 price range. Notably, the impending correction accounts for a 33.4% depreciation from ADA’s current market price of $0.3552. He based his price call on ADA reaching the base of its bullish expanding triangle pattern.
Sanatana noted that ADA has shown inherent price weakness, as it failed to touch the major resistance at its MA200 trend line during its last uptrend. According to him, the low trading volume and lack of bullish momentum seen in the price chart signal that the downtrend is not over yet.
Furthermore, Santana stated that the next correction to $0.2367 will likely be the last phase of the downtrend before a notable price recovery. Notably, the analyst’s chart shows that ADA’s price correction started in March when it was rejected at the yearly high of $0.7742.
Massive Pullback After Recovery Phase
Meanwhile, Santana speculated that Cardano would experience a prolonged recovery phase if it held the $0.236 region at the baseline of its bullish expanding triangle. Per the analysis, ADA could surge extensively, targeting the MA200 resistance at $0.4326.
The analyst asserted that a break above the resistance will push ADA to its yearly high at $0.7742. However, he noted that it might take Cardano till the latter part of Q1 2025 to reach that level.
Notably, Sanatana is not the only analyst calling for a further correction in Cardano’s price. An earlier report showed that analyst Ray Trader predicted that ADA would fall to $0.15. The experienced trader argued that Cardano’s fall below $0.4 was a good sign to short the asset to a price level last seen in 2021.
