On Monday, Cardano (ADA) recovered to $0.3484, rebounding almost 11% after falling to $0.3147 just three days before. Nevertheless, as Cardano fights to keep up its upward pace, this surge is rapidly diminishing.
ADA is currently close to the crucial $0.3544 mark, having gained 4.55% the previous day. The daily period shows that ADAUSDT is bearish. However, given the sideways movement of the overall crypto market, it appears to be in a consolidation period. The price may drop to retest the support regions since it has formed a range below the 0.35 resistance level.
However, the unstable prices have increased concern as specialist Lingrid also emphasized the negative outlook.
Lingrid Suggests Shorting Cardano (ADA)
In the latest report, Lingrid highlighted that as ADA approached and consolidated below the key $0.35 support level, the token looked vulnerable. The specialist noticed that the overall cryptocurrency market is still sideways, and that having failed to breach the range that is present at the moment, ADA experiences additional pressure to the downside.
Looking at it from a daily time scale, Lingrid realized that ADA is currently stuck between $0.30 and $0.34. In the daily chart, a doji candle has formed, which usually indicates that the market is not confident in either direction. Lingrid believes that if this is the scenario that the market is looking for, then there may be some retest of support levels around $0.325 or in that area.
Even if traders may find chances when the price stabilizes inside the current range, the attitude is still adverse.
Moreover, according to Lingrid’s research, ADA risks dropping further lower toward the $0.30 region if it is unable to maintain above the $0.325 support. Finally, Lingrid simply gave ADA a short signal.
Analysts predict that ADA is going to drop 33% to $0.2197.
Analyst FinancialFreedomGoals gave another highly pessimistic price analysis in her analysis of ADA. In this view, she highlighted that a majority of cryptocurrencies, including Cardano, are locked in a bear market.
With more trading volume, ADA just broke out of its rising wedge, although this was not the positive breakout that many had expected.
The research shows that Cardano is strengthening the strong negative trend on the daily chart by closing the gap below the EMA200 line and the bearish trendline. A rising wedge pattern developed, but a string of strong bearish candlesticks whacked it before it could break out.
Additionally, the MACD has included a bearish crossing for good measure to spice things up. Not quite what the bulls were looking for, Cardano just suffered a tumble, breaking out of the rising wedge with a jump in trade volume.
Worse still, the MACD line was below the signal line, which showed that the bears were becoming even more bearish.
Since all these indications are negative, FinancialFreedomGoals is projecting a likely slide into target Area 1 at 0.2506 or a more profound fall in Target Area 2 at 0.2197. These goals are plotted by using the Fibonacci ratios of 1.272 and 1.618.
However, the analyst pointed out this keeps changing; hence, if ADA price goes over the resistance level at 0.3815 then bulls can have some hope.
