Cardano (ADA) Price Prediction For December 27
ADA, the native token of the Cardano blockchain, appears to be struggling to maintain its key support levels amid market uncertainty. Today, December 27, 2024, overall cryptocurrency market sentiment appears to be experiencing price declines, including major assets such as Bitcoin (BTC), Ethereum (ETH), and XRP.
The decline in major asset prices has completely shifted market sentiment to the downside.
Cardano (ADA) Current Momentum
At press time, ADA was trading close to $0.864, with the price down more than 6.9% in the past 24 hours. Amid the price decline, altcoins have reached critical levels. Failure to hold this level could see the asset drop 15% below the $0.75 mark.
This bearish price action creates fear among traders and investors, leading to a drop in trading volume. According to CoinMarketCap data, fennel Trading volume fell by 16% in the past 24 hours.
Cardano (ADA) Technical Analysis and Upcoming Levels
According to expert technical analysis, ADA has recently broken out of a bearish head and shoulders price action pattern. It has been consolidating below the pattern’s neckline for the past seven days. During the recent price decline, ADA’s price has reached the lower limit of the consolidation zone and is on the verge of collapse.
Based on the recent price action, if the altcoin breaks this level and closes below the lower limit of the zone, a 15% drop to reach the $0.77 mark is very likely in the future.
The bearish thesis for ADA only holds true if the daily candle closes below the $0.85 level, which forms the lower limit of the consolidation zone. Otherwise, the bearish scenario may not materialize.
On-chain indicators reveal complex sentiments
Despite the pessimistic outlook, long-term holders appear optimistic, while traders appear hesitant to open new positions, reports on-chain analytics firm coin glass. ADA spot inflow/outflow data shows that the exchange witnessed significant outflows of $4.7 million worth of ADA, indicating underlying accumulation and buying pressure.
Instead, traders appear to be liquidating their positions, as evidenced by an 8.2% drop in ADA open interest over the past 24 hours.
