Cardano (ADA) has once again captured the attention of crypto analysts who are actively discussing its future trajectory. Recently, analyst Alan Santana has presented a bearish narrative for the crypto token, suggesting a potential drastic drop in its price. Santana’s analysis revolves around ADA’s breakout below the $0.58 price level, which had previously served as a crucial support for the token over five weeks. This break below the support level indicates a bearish sentiment towards ADA, leading Santana to predict a further significant dip in its price, despite already experiencing a 30% decline from its recent peak.
Santana speculates that ADA’s price could potentially drop between $0.4444 and $0.3450 in the near future. However, he emphasizes that such price movements may not necessarily be negative for the crypto token. He points out that several altcoins, which have previously witnessed a 2x to 3x increase in their prices, underwent corrections of a similar magnitude before ultimately experiencing a surge. The analyst further notes that during these corrections, all altcoins tended to test a price range between the 0.618 and 0.786 Fibonacci retracement level. According to the chart shared by Santana, ADA could potentially plummet to as low as $0.34, which corresponds to the 0.786 Fibonacci retracement level.
In addition to the price predictions, Santana also acknowledges the possibility of ADA moving higher from its current price level. However, he remains skeptical due to the crypto token’s ongoing lagging performance, which makes further price declines appear more likely. The weekly chart of ADA indicates a “break below the EMA10 (Exponential Moving Average) with a very strong bearish candle” as the RSI (Relative Strength Index) turns red. Santana concludes by stating that once support is identified and established, a bullish sentiment may return to the market.
Despite the bearish stance presented by Santana, Cardano’s founder, Charles Hoskinson, remains optimistic about the future of the Cardano ecosystem. In a recent post, Hoskinson expressed his confidence in Cardano by asserting that “Cardano always wins.” His statement was in response to a poll ranking the best Layer-1 network, where Hoskinson suggested that Cardano would emerge at the top in a fair vote scenario. This reaffirms Hoskinson’s unwavering belief in the network he helped create.
However, despite Hoskinson’s positive outlook, concerns linger regarding ADA’s market performance. Despite the perceived network value of Cardano compared to other networks like Solana, the network’s value has not significantly impacted ADA’s price. As of the latest data, ADA is trading at around $0.56, marking a 2% decline in the last 24 hours, according to CoinMarketCap. This divergence between the network value and the token price raises apprehensions among ADA holders regarding the future trajectory of the crypto token.
The bearish narrative surrounding Cardano (ADA) outlined by analyst Alan Santana sheds light on the potential challenges and opportunities facing the crypto token. While price dips and market corrections are part of the volatile nature of the cryptocurrency market, the long-term viability and growth of Cardano will depend on various factors, including market sentiment, technical developments, and network activities. As the crypto landscape continues to evolve, investors and enthusiasts alike should closely monitor ADA’s performance and upcoming developments to make informed decisions in this dynamic market environment.