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Cardano (ADA) is showing diverse signals as its market framework suggests an impending short-term price drop. Despite bearish signals indicating a potential downturn, a crypto analyst indicates that the overall trend remains steady, with technical formations backing the possibility of a rise towards the $0.9 level.
Cardano Price Drop Approaching
TradingView Crypto analyst SiDec has unveiled a pessimistic price prediction for Cardano, foreseeing a considerable correction towards the $0.75 range in the upcoming days. This prudent forecast is grounded in thorough analysis utilizing Elliott Wave Theory, Fibonacci instruments, and essential price action levels.
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SiDec has remarked that ADA’s value is still consolidating after completing a 5-wave impulse sequence, signaling the conclusion of its upward momentum. Following this robust impulse advance, the cryptocurrency is now demonstrating a typical Elliott Wave behavior, transitioning into a classic ABC corrective formation.
The cryptocurrency first encountered a pull-back, marked as Wave A on the price chart, succeeded by a brief recovery in Wave B. According to SiDec, Wave C is anticipated to finalize the retracement pattern, with ADA’s ultimate downward motion approaching its conclusion.
At present, technical readings and price action direct to the $0.705 area as a high-probability long entry point. The TradingView analyst also specifies where ADA might establish robust support during this corrective phase utilizing Fibonacci Retracement levels.
The 50% retracement point of the entire bullish 5-wave impulse is located roughly at $0.7534 — a vital price level that closely aligns with ADA’s previous price fluctuation at $0.746. This older resistance level remains unvisited, rendering it a natural support option.
The assessment further identifies a 1:1 ABC extension for the expected correction in ADA, positioning Wave C’s potential crash target around $0.7492. This also establishes a compact grouping of technical indicators in the vicinity of roughly $0.75, indicating a robust support area.
Additionally backing this level, the daily 21 Exponential Moving Average (EMA) stands at $0.7455, while the daily 21 Simple Moving Average (SMA) is slightly below at $0.7347. SiDec has also pinpointed the Point of Control (POC), highlighting the price with the highest volume, near $0.7318.
The analyst further underscores that Cardano’s anchored Volume Weighted Average Price (VWAP) resides within the $0.75 support zone. Concurrently, the Pitchfork tool’s golden pocket aligns dynamically as support in the same region.
ADA Price Trajectory to $0.92 Remains Strong
While SiDec anticipates a potential drop to lower levels for ADA in the short term, the analyst’s chart also illustrates a growth zone, featuring a projected bullish rebound. After the Wave C drop, Cardano is anticipated to recover and reach the $0.92 mark.
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The TradingView analyst has advised caution in this area, as $0.92 serves as a crucial resistance zone and aligns with a previous liquidity area that could trigger rejection or profit-taking.
SiDec has stressed that the risk-to-reward ratio around this region will only become advantageous upon clear validation, such as an SFP, a bearish engulfing candlestick, or observable divergence. Overall, should the $0.75 support area persist, Cardano, currently trading at $0.78, could be set for a substantial recovery towards $0.92 and beyond.
Featured image from Unsplash, chart from Tradingview.com
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