Cardano's price could significantly drop by 30%, as a recent assessment by an analyst shows the outlook is 'not optimistic.' Just days after the conclusion of the Cardano Summit in Dubai, the outlook for ADA's price turned pessimistic, with discussions at the summit about the network's role in building a safer and more practical blockchain ecosystem.
Despite the bleak outlook, ADA's price has risen by 0.4% in the past 24 hours, trading at $0.3344. Cardano also fell by 8.9% this week, with its 24-hour trading volume down by 14%, indicating a recent decline in market activity, further confirming the gloomy price outlook for Cardano.
Why Cardano's price may plummet by 30%
Cryptocurrency analyst Skinny states that ADA's price looks 'not optimistic.' He points out that the price against Bitcoin (BTC) or Tether (USDT) has not yet hit bottom. He notes that the bearish trend in the price chart continues and predicts the next stop will be at $0.23, marking a 31% drop from Cardano's current value. Meanwhile, with BTC prices maintaining above $67,500, the rest of the cryptocurrency market is thriving.
Currently, market sentiment towards Cardano is generally bearish, as traders remain cautious about the current price trends. Data from Santiment shows that ADA's social volume has been declining since October 24. This indicates that public interest in Cardano is waning, which could signal a price drop.
Additionally, since October 14, Cardano's financing rates have remained stable, and on October 22, the open interest (OI) fell to a five-month low. The stagnation in financing rates indicates that market sentiment has not significantly shifted in either direction. Surprisingly, during the Cardano Summit in Buenos Aires, open interest declined, despite founder Charles Hoskinson stating that ADA would surpass Bitcoin and Ethereum in ten years.
A decline in OI indicates a reduction in positions held by traders. Overall, these on-chain indicators suggest that volatility has increased as the market attempts to find a new balance. According to Coinglass liquidation map data, the number of ADA shorts ($26.71 million) is about four times that of longs ($6 million) on a weekly time frame. This imbalance indicates that a bearish outlook is dominating the market, as traders expect Cardano's price to plummet.
The Cardano community remains optimistic about their project, with some analysts predicting ADA's price could reach $3, while others forecast that during this bull market, ADA's price might soar to $14 or even $16.
ADA Technical Analysis: 20% Gains or 30% Losses
After testing the resistance level twice and the support level three times, Cardano's price currently remains within a three-month range. While the range volatility gives investors hope, the dismal on-chain indicators and trader behavior suggest a potential downside breakout.
Currently, the key support level is at $0.31, coinciding with the range demand zone. On the other hand, direct resistance is at $0.37, with $0.41 above that, also located in the range supply zone.
The overall analysis of Cardano's price is bearish; however, bulls could push the price up and break through the resistance at $0.41, indicating a strengthening market as ADA would surge to $0.45, thus invalidating the current bearish argument.
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