TL;dR
- Indicators suggest a possible new corrective phase for Cardano (ADA), with the risk of falling to $0.40.
- Liquidation signals and open interest support the theory of a new decline.
- The decline of ADA below the $0.48 support invalidates any bullish bias.
Cardano’s price is in the eye of the storm. Indicators suggest it could face a new corrective phase, potentially bringing its value down to $0.40. The analysis is based on the Elliott Wave theory, which has revealed that ADA has fallen below a crucial support, indicating a bearish trend.
According to signals derived from liquidation levels and open interest (OI), ADA is expected to decline to $0.42 in the near future. The forecast has been supported by More Crypto Online, a cryptocurrency channel, which asserts that Cardano has not yet hit bottom and another fall could be on the horizon.
The decline of ADA below the $0.48 support has invalidated any bullish bias, suggesting that the price could fall even further to reach $0.42. Currently, according to Coinmarketcap, ADA’s price stands at $0.46, with a 0.6% increase in the last 24 hours.
Dark Clouds Loom Over Cardano
Technical data is clear. It shows a bearish trend in open interest over the last seven days, indicating that sellers are more aggressive than buyers. In other words, sellers are assuming a dominant position in the market.
Additionally, analysis of liquidation levels and CLLD (Cumulative Liquidation Levels Delta) indicate an increase in long liquidations. Further reinforcing ADA’s bearish trend. On the other hand, no magnetic zone is identified on the chart that could attract an increase in Cardano’s price. And the positive CLLD suggests a plausible full retracement for ADA.
Cardano faces a challenging scenario in the short term; technical indicators point to a possible decline in its price. Investors will encounter several complications in the coming times, so closely monitoring the cryptocurrency’s price evolution will be essential.
