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Cardano Faces Bearish Pressure That May Continue for Long – Analyst

source-logo  coinedition.com 19 April 2024 17:27, UTC

The Cheeky Crypto YouTube channel host Nick has highlighted some of Cardano’s (ADA) challenges following its recent price trend. According to Nick, technical analysis shows that ADA faces significant bearish pressure without any signs of immediate recovery.

In a recently uploaded video, Nick revealed that ADA’s price dropped by 50% in one month, leaving users worried about the future of the Layer-1 blockchain token. The drop happened between March 14 and April 13, when ADA fell from $0.810 to $0.401.

Meanwhile, Nick highlighted that the drop reflected a bearish pattern, making it difficult for users to expect a recovery soon. The renowned crypto analyst noted how ADA achieved a series of lower highs and lower lows to form a classic bearish pattern. He also noted the absence of an overlapping candlestick on Cardano’s daily chart, emphasizing why the trend remains bearish for the top altcoin.

On further examination, Nick used the Elliott Waves to show that ADA could drop lower. According to him, pushing the 1.618 Fibonacci level would confirm that ADA’s current pullback is not just a retracement but a change in direction, leading to a bearish trend.

With the developing downtrend, Nick predicted ADA’s next target to be between $0.3574 and $0.3832. According to him, that would mark the fulfillment of the downward 5-Wave move, as indicated by the Elliott Wave. At that point, ADA’s price would fall below the 1.618 Fibonacci level, exposing a more established downtrend with increased bearish pressure.

Nick’s analysis presents significantly low targets for ADA, suggesting substantial losses for the altcoin holders. However, he considers the altcoin’s dropping price as an opportunity for users to accumulate the crypto token and build bigger positions ahead of imminent reversal to the upside.

ADA traded for $0.442 at the time of writing, according to data from TradingView.

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