Cardano’s Market Dynamics Indicate a Possible Downturn, Yet $0.90 Remains a Likely Target

Cardano (ADA) is exhibiting mixed signals as its market posture suggests a potential short-term price drop. While negative indicators indicate a likelihood of decline, a crypto expert points out that the overarching trend remains steady, with technical signals hinting at a possible rally toward the $0.9 level.

Anticipated Price Drop for Cardano

TradingView analyst SiDec has issued a pessimistic price outlook for Cardano, forecasting a significant decline towards the $0.75 range in the near future. This cautious prediction stems from thorough analysis utilizing Elliott Wave Theory, Fibonacci levels, and key price action zones. 

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SiDec has indicated that ADA’s price has been consolidating after completing a five-wave impulse movement, which indicates the conclusion of its upward trend. Following this strong upward movement, the cryptocurrency is now demonstrating typical Elliott Wave behavior, entering a classic ABC corrective pattern. 

Initially, the cryptocurrency experienced a pullback, recognized as Wave A on the chart, followed by a short recovery phase in Wave B. SiDec anticipates that Wave C is set to complete the retracement, with ADA’s final downward trajectory nearing its conclusion. 

At present, technical analysis and price movements indicate the $0.705 zone as a strong potential entry point for longs. The TradingView analyst has also outlined where ADA may encounter substantial support during this corrective phase, utilizing Fibonacci Retracement levels.

The 50% retracement level from the complete bullish five-wave impulse is situated around $0.7534 — a pivotal price point closely aligned with ADA’s prior swing at $0.746. This former resistance level remains untested, making it a prime candidate for support. 

The analysis further indicates a 1:1 ABC extension for the expected correction in ADA, positioning Wave C’s potential crash target at approximately $0.7492. This forms a dense cluster of technical indicators near the $0.75 area, establishing a robust support zone. 

In support of this level, the daily 21 Exponential Moving Average (EMA) is at $0.7455, while the daily 21 Simple Moving Average (SMA) sits slightly lower at $0.7347. Additionally, SiDec has identified the Point of Control (POC), reflecting the price with the highest trading volume, around $0.7318. 

The analyst also stresses that Cardano’s anchored Volume Weighted Average Price (VWAP) lies within the $0.75 support area. Simultaneously, the Pitchfork tool’s golden pocket aligns dynamically as support in the same vicinity. 

ADA’s Path to $0.92 Remains Strong

While SiDec projects a potential decline to lower levels for ADA shortly, the expert’s chart also highlights a growth zone, indicating a forecasted bullish rebound. After the anticipated Wave C drop, Cardano is poised to recover and approach the $0.92 mark. 

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The TradingView analyst has urged caution around this point, as $0.92 represents a critical resistance zone and aligns with a prior liquidity area that may instigate rejection or profit-taking. 

SiDec has highlighted that the risk-to-reward ratio in this vicinity will only become attractive following clear confirmation, such as an SFP, a bearish engulfing candle, or observable divergence. Overall, assuming the $0.75 support zone holds, Cardano, currently trading at $0.78, could be set for a robust recovery towards $0.92 and beyond.

Featured image from Unsplash, chart from Tradingview.com