According to Alan Santana, a chart analyst on TradingView, the weekly chart of Cardano (ADA) is sending bearish signals, suggesting a potential correction in the cryptocurrency’s price. In his analysis, Santana examines the downward trend and explores the possible extent of the correction.
What you'll learn 👉
Five Weeks of Decline: A Bearish Signal
Santana highlights that Cardano has experienced five consecutive weeks of price declines, a pattern that can indicate either an impending bearish move or a developing bearish trend. Moreover, the fact that the support level around $0.5800 has been breached after holding for five weeks further reinforces the bearish signal.
Potential Correction Range
Based on his analysis of approximately 150 altcoin charts that had already grown 2-3 times beyond 100%, Santana suggests that corrections tend to test a price range between the 0.618 and 0.786 Fibonacci retracement levels of the entire move since the 2023 low (or 2022 low in some cases). Consequently, for Cardano (ADA), this support range would be between $0.4444 and $0.3450.
While Santana acknowledges the possibility of Cardano continuing to grow or move higher before a potential correction, he notes that the cryptocurrency has been lagging behind other altcoins. Therefore, it is more plausible to assume that Cardano will continue to lag rather than catch up.
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Show more +Technical Indicators and Market Conditions
The weekly chart for Cardano is currently producing a break below the 10-period exponential moving average (EMA10) with a strong bearish candle, and the Relative Strength Index (RSI) is turning red. Santana emphasizes that until market conditions and the chart change, the wise decision is to remain bearish.
According to CoinGecko, the current price of Cardano (ADA) is $0.5816, representing a 1.89% price decline in the last 24 hours. However, if the correction continues, Santana’s analysis suggests potential support levels between $0.4444 and $0.3450.
While Santana’s analysis provides insights into the potential bearish trend for Cardano, it is essential to note that cryptocurrency markets are highly volatile, and individual investment decisions should be made based on thorough research and personal risk assessment.
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