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- Cardano faces a potential bearish correction indicated by five consecutive weeks of decline.
- A chart analyst predicts a correction range for ADA between $0.4444 and $0.3450 based on Fibonacci retracement levels.
- Technical indicators suggest a bearish trend for Cardano’s price movement.
Chart analyst Alan Santana has raised concerns about the future trajectory of Cardano (ADA) in the cryptocurrency market. Santana’s examination of ADA’s weekly chart reveals a troubling pattern of five consecutive weeks of decline, indicating a possible downturn in its price.
The breach of the support level at $0.5800, which had held firm for five weeks, adds weight to the bearish outlook. Drawing from his analysis of numerous altcoin charts, Santana predicts that corrections typically gravitate towards specific Fibonacci retracement levels following significant price surges.
For Cardano, this could translate to a potential support range between $0.4444 and $0.3450. Despite the chance of further growth before a correction, Santana notes ADA’s lag behind other altcoins, suggesting it’s more likely to continue trailing than to catch up.
In addition to technical indicators pointing to a bearish trend, Santana highlights the importance of market conditions, emphasizing the need to maintain a cautious stance until there are significant changes in the chart. At present, the weekly chart for Cardano displays a break below the 10-period exponential moving average (EMA10), accompanied by a robust bearish candle, while the Relative Strength Index (RSI) signals a downturn.
CoinMarketCap data reveals Cardano’s current price at $0.5816, marking a 1.89% decrease in the last 24 hours. However, given Santana’s analysis, potential support levels for ADA may lie within the aforementioned range if the correction persists.