- Cardano’s ADA is predicted to enter another corrective phase, potentially dropping to $0.42.
- Technical indicators, including the Elliot Wave and Open Interest (OI), suggest a bearish bias.
- While the Cumulative Liquidation Levels Delta (CLLD) indicates more long liquidations, the absence of a magnetic zone could restrict an upside movement.
Cardano’s ADA may be heading for another decline, with indicators suggesting a potential drop to $0.42. The bearish bias is backed by technical data and on-chain metrics.
ADA Slips Below Crucial Support
According to a session posted on YouTube by More Crypto Online, the Elliot Wave confirmed that ADA had slipped below the crucial $0.48 support, invalidating any bullish bias. The channel noted that ADA might break down or move sideways as it has only seen a 3-wave corrective rally, which is typically not bullish. If ADA slides down Wave 5, it could signal a large degree of downswing, potentially dropping the price of the Cardano native token to $0.42.
Sellers Take the Offensive
The Elliot Wave, a technical theory that looks at recurrent price patterns, suggests that sellers are currently on the offensive. Open Interest (OI), the sum of all open positions connected to a contract in the derivatives market, was $548.6 million at press time, a decrease from the value seven days ago. This suggests that sellers are the aggressive ones, and if this decline goes unchecked, the prediction of $0.42 could be validated.
Potential Drop to $0.42
Alongside the OI, the Cumulative Liquidation Levels Delta (CLLD) and liquidation levels were also analyzed. The CLLD, which predicts price levels where large liquidations might occur, was positive, indicating a looming full retrace for Cardano. However, the absence of a magnetic zone that could attract a rise in Cardano’s price suggests that this bearish bias could restrict ADA from starting an upside movement. In a highly bearish situation, the price of the token could drop to $0.40.
Conclusion
While technical data alone does not determine the future of Cardano, the current indicators suggest a bearish outlook for ADA. If the decline goes unchecked, ADA could potentially drop to $0.42 or even $0.40 in a highly bearish scenario. Investors and traders should keep a close eye on these metrics to make informed decisions.
