thecryptobasic.com
A key indicator has flipped bearish for Cardano, with historical context suggesting a steep decline is on the horizon for the asset.
Notably, this analysis came from top chartist Ali Martinez, even as Cardano corrects considerably. The asset has corrected 1.23% in the past 24 hours and 7.7% in the past seven days, taking its current price to $0.40.
More Cardano Downsides?
Martinez identified that the Cardano SuperTrend has turned negative on the weekly chart. For the uninitiated, the SuperTrend indicator dictates price direction and uses the Average True Range (ATR) to signal buying or selling opportunities. This indicator has turned bearish, signaling that downward momentum could persist for Cardano.
For context, the SuperTrend spelled doom for Cardano the last time it occurred on this timeframe. Martinez highlighted that $ADA dropped by 80% the last time this indicator turned bearish, a trend holders should be wary of.
An accompanying chart shows that this happened in early December 2021 after $ADA printed three consecutive weekly red candlesticks. Specifically, Cardano opened at $1.38 that week and, in subsequent weeks, dumped 84% to bear-market lows of $0.22 in June 2023.
If history repeats, $ADA could retest multi-year lows. Specifically, from its current price of $0.403, the cryptocurrency could drop to $0.064, a level it last traded at in early 2020. However, such a drop may be unlikely.
Bulls Disagree
Remarkably, several other analysts have expressed a conflicting view. Instead of a price crash, they foresee a rebound to new highs.
One such analyst is Quantum Ascend, who predicted that Cardano is ready for an impulsive upside move. He highlighted that $ADA trends near the low of a multi-year channel and may have bottomed around the current support level.
Citing similarities with the 2020 rally, he asserted a surge to a conservative target of $5.56. However, his primary target for this surge is $10.4.
Captain Faibik also disclosed he is “buying some Cardano here” as it is a good entry opportunity. He targets a recovery to $0.70, representing a 73% rise.