Amidst a broader crypto market pullback spearheaded by Bitcoin’s wavering momentum, Cardano (ADA) is showcasing signs of vulnerability, sparking apprehension among investors.
Since reaching a peak of $0.80 in mid-March, ADA has experienced a significant decline of approximately 45%, sliding into a consolidation phase over the past four weeks. Despite steadfast support from bulls, hovering around the $0.44-$0.45 mark, indications suggest the potential for further downward movement.
Market sentiment was notably stirred by a cryptic tweet from seasoned analyst Peter Brandt on Sunday. While refraining from commenting, Brandt shared a chart depicting ADA’s previous support breach in late April, following a prolonged period above the $0.56 support level.
Brandt’s analysis highlighted looming selling pressure, with ADA now teetering near critical support thresholds at around $0.45. A breach below the latter could signal a deeper descent, echoing Brandt’s cautionary tone.
Echoing Brandt’s concerns, other analysts pointed out bearish indicators, with one trader citing a potential breakdown if ADA fails to rectify a bearish RSI divergence and reclaim key levels.
Conversely, some maintain an optimistic outlook, drawing parallels between Cardano’s trajectory and that of Ethereum in previous cycles. Analyst Dan Gambardello, commenting on Saturday, drew comparisons between Cardano’s current downturn and Ethereum’s past performance, suggesting a cyclical pattern that could lead to future resurgence.
Analyst Javon Marks also expressed bullish sentiments, buoyed by ADA’s recent price surge. Marks projected potential gains of up to 15X, underlining ADA’s substantial progress since breaking through resistance levels.
“Prices of ADA have demonstrated significant advancement, surging by approximately +222% towards its initial target at $2.7709,” Marks told his 38,000 followers on X.
He further speculated that the recent pullback might fortify ADA’s position for further upward movement. Marks elaborated on the potential: “With this breakout holding, another +462% upside could be in the cards to reach this target. However, based on the precedent set by previous breakouts, prices could potentially soar even higher. The $7.80 level could become a reality, marking an over 1,500% increase from current levels.”
Similarly, analyst Ali Martinz recently offered a historical perspective, drawing parallels between Cardano’s current trajectory and past bullish cycles. Martinz’s analysis suggested that ADA’s recent price correction may be a precursor to a parabolic bull run, hinting at substantial upside potential.
ADA was trading at $0.43 at press time, reflecting a 2.32% drop over the past 24 hours.
