Cardano (ADA) Could Fall 15%, Here’s Why
The entire cryptocurrency market is in trouble today, December 22, 2024, and Cardano (ADA) is set to see a significant price decline after forming a bearish price action pattern. Amid this mildly bearish market sentiment, traders and investors appear hesitant to participate in altcoins, according to on-chain analytics firm Coinglass.
Analysis of recent on-chain indicators as well as technical analysis suggest promising prospects Cardano (ADA). While long-term holders are showing optimism, as evidenced by heavy outflows on exchanges, technical patterns point to an underlying short-term bearish trend.
Cardano (ADA) Technical Analysis and Upcoming Levels
According to technical analysis from CoinPedia, ADA appears bearish as it has successfully broken out of a head and shoulders price action pattern and recently retested this level. This retest at the breakdown level partially confirms that ADA price is about to fall.
According to technical analysis, the altcoin is likely to fall by 15% and reach the next support level at $0.80 mark. If this sentiment holds, ADA could easily achieve its desired goals.
Optimistic on-chain indicators
Despite bearish technical analysis, long-term holders appear to be optimistic about ADA, reports ADA coin glass. According to ADA spot inflow/outflow data, the exchange has experienced a significant outflow of ADA worth $200 million in the past week. However, despite the significant price decline, there were no inflows during this period.
This trend represents the movement of assets from the wallets of long-term holders away from exchanges. This suggests investors were bullish and accumulating the token during the price crash, indicating potential upward momentum and an ideal buying opportunity.
Current Price Momentum
At press time, ADA was trading close to $0.89, with the price down more than 5.5% in the past 24 hours. During the same period, its trading volume fell by 45%, indicating reduced participation from traders and investors amid continued price declines.
