Cardano (ADA) Price Alert: Potential Drop to $0.40 Amid Market Uncertainty

  • 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.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.

BREAKING NEWS

Bitcoin Futures Open Interest Surges to $66 Billion: CME Leads with $16 Billion

On May 17th, COINOTAG reported that the **total open...

Trump Critiques Powell’s Fed Leadership Amid Calls for Interest Rate Cuts

COINOTAG News, May 17th. In a recent statement, former...

Trump’s Upcoming Call with Putin and NATO Discussions: Impact on Bitcoin Market

In a development that may influence global economic stability,...

ETH’s Recent Gains: Technical Factors Drive Price Action, but Demand Remains Limited

In a recent update from COINOTAG on May 17th,...

Bitcoin Mining Difficulty Rises 2.13% to 121.66 T as Network Hash Rate Hits 846.6 EH/s

COINOTAG reported on May 17 that recent analyses from...
spot_imgspot_imgspot_img

Related Articles

spot_imgspot_imgspot_imgspot_img

Popular Categories

spot_imgspot_imgspot_img