Crypto trader Crypto Tice has identified four technical signals that suggest further downside pressure on Cardano (ADA). The analysis comes as ADA has declined 25.7% from a recent high of $0.28 earlier this month.
Four Bearish Signals Identified
Tice's outlook rests on four key technical indicators currently observed in Cardano's price action:
- Potential Wyckoff Distribution: A possible distribution pattern in Phase C that could indicate large market participants are selling their holdings.
- Position Below 200-Day EMA: Cardano trades below its 200-day exponential moving average at $0.2385, suggesting weak broader momentum.
- Lower Highs and Lower Lows: The daily chart shows a series of lower highs and lower lows, a structure typically associated with downtrends.
- Selling Volume Imbalance: Over the past 20 days, volume on declining days has been 2.2 times the volume recorded on advancing days.
Price Targets and Support Levels
At the time of the analysis, Cardano traded at $0.2080 within a marked range of $0.1938 to $0.2565. Tice identified $0.2452 as a crucial level; if ADA fails to reclaim this price, he suggested $0.1204 as the next potential downside target, representing a 42.1% decline from the analysis point.
The analyst acknowledged a potential counterargument: ADA was testing a rising trendline that had attracted four separate price touches. If buyers defend this support, it could interrupt the ongoing decline.
Other Analysts Weigh In
Other market commentators have also issued bearish projections for Cardano. Analyst Kevin Mercer highlighted a zigzag pattern that could send ADA to $0.15 before a potential rebound to $0.27, while stake pool operator Sssebi anticipated a possible dip followed by recovery.
These projections underscore ongoing uncertainty around Cardano's near-term direction as traders monitor key technical levels. The forecasts remain speculative, and ADA could rebound if buyers defend support levels.
