thecryptobasic.com
A widely followed crypto trader warns of a potential 61% crash for Cardano ($ADA) to $0.15, urging investors to consider shorting despite recent gains.
Cardano reclaimed the $0.40 region a few days ago amid the broader bull run in the crypto market. $ADA benefited from the buoyant market, hitting $0.4147, a price point it last traded at in July, marking a two-month high.
However, despite Cardano’s impressive price action at the end of September, some market analysts continue to urge participants to short $ADA. They warn that the bulls have not returned yet.
Analyst Looking for 61% Crash in Cardano
For instance, market watcher RayTrader on TradingView recently updated his analysis of $ADA, emphasizing a bearish outlook for the coin. He recognized Cardano’s successful entry into the $0.40 range on September 26. However, RayTrader disclosed that he still expects a consequential price drop, forecasting a decline to between $0.16 and $0.15 before a potential shift to a bull market.
For context, $ADA is trading at $0.3846 at the time of reporting. Crashing to $0.15 would represent a substantial capital loss of approximately 61% for today’s investors. Cardano last traded in this range in December 2020 before rallying to an all-time high of $3.10 in September 2021.
This means that, even after $ADA declined significantly during the bear market of 2022 and 2023, its price did not reach the $0.15 level. Yet, despite the present broader bull market sentiment, RayTrader firmly believes a crash in this region is possible.
“Good Sign” to Continue Shorting $ADA
RayTrader updated his initial bearish outlook shortly, stating that Cardano’s recent fall below the $0.40 level was a “good sign” to short the coin. He outlined a more immediate short target of $0.25.
Following the broader market downturn on Monday, when $ADA slipped to $0.3718, RayTrader reiterated that this development is another good sign for short sellers to hold their positions, noting that there is a long way to go before reaching the $0.15 level.
The bearish analyst suggested that those satisfied with accrued profits from shorting $ADA may choose to liquidate their positions along the way, but he believes more profit could be made with patience until the $0.15 target is hit. He argues that reaching this level would signal the bottom from which a significant bull run could commence for Cardano.
While RayTrader remains significantly bearish on $ADA, other market analysts hold a bullish outlook. Citing historical patterns, they project that the coin could reach as high as $10 in this bull season.