Cardano’s market structure is currently bearish, with technical indicators suggesting a potential deep price drop in the near future. Despite forming a bullish chart pattern that could lead to a price increase to $1, the token’s price action has not been encouraging.
The price of Cardano (ADA) is currently below the January 2024 lows, signaling weak bullish activity. Fibonacci levels indicate a possible significant drop in ADA’s price. Investors should be prepared for a potential 30% plunge in the value of ADA.
Throughout 2024, ADA has been trading within a range, with prices hovering near the range lows. The inability of bulls to reclaim the $0.5 level has resulted in a lack of buying pressure. The On-Balance Volume (OBV) and Relative Strength Index (RSI) indicators both suggest downward momentum in ADA’s price.
Short-selling has become a popular strategy for traders, with short-sellers entering the market and contributing to bearish sentiment. The lack of buying activity, as indicated by the spot CVD, further supports the bearish outlook for ADA.
The projected 30% drop in ADA’s price could become a reality if bulls do not intervene to counter the consistent selling pressure. As of now, there are no clear signs of strength from the bulls, who are struggling to defend the long-term range lows.
It’s important to note that the information presented does not constitute financial advice and is solely the writer’s opinion. In conclusion, Cardano’s price outlook remains bearish, with the potential for a significant drop in value if current trends persist.