Cardano’s (ADA) Downtrend Analysis
Cardano’s (ADA) chance to overturn the ongoing downtrend is becoming slimmer as sellers continue to determine the pace and direction of the market. In the last 30 days, the asset has been trading sideways, losing 5.4% of its value within the period. However, its 24-hour and seven-day price chart indicates a “slowly rebounding confidence” as the asset records 1.8% and 2.4% gains respectively.
Cardano (ADA) Price Analysis
According to an analyst called Ansem, ADA could continue its bearish extension and lose 50% of its value. Backing his analysis with a chart, Ansem pointed out that the current market trend has been dominated by lower lows and lower highs, with $0.7786 flagged as a crucial psychological level. Breaking above this level could see ADA retouching the $0.80 level. However, failure to do so could see the asset falling to as low as $0.40, according to the chart.
Source: Ansem on X Meanwhile, other analysts, including Dan Gambardello, were very emphatic in their predictions. According to Gambardello, ADA has the potential to hit $10. Explaining his point, the analyst highlighted that the path to this level is “very realistic” based on the signals on the macro charts and macrocycles of the broad market. Gambardello observed that the Decentralized Finance (DeFi) ecosystem of Cardano could be a major catalyst for this growth as he labels its current phase as the ground floor. Reviewing his thesis, we found that the move to between $5 and $10 would demand ADA to have a market cap of around $350 billion. Fascinatingly, Gambardello argues that this is a lot less than the market cap recorded by Ethereum (ETH) in the previous cycle.
I don’t know if the move will happen now, in a month or two, but a move like that is what we see not just with ADA but with other cryptos as well…$350 billion market cap is still a lot less than what Ethereum did last cycle. It’s becoming clear to the industry that Cardano is way more fundamentally sound, secure, and decentralized than Ethereum.
Important Catalysts for Growth
Outlining some of the factors that could propel the price to $10, Gambardello mentioned the much-anticipated launch of the spot ADA Exchange Traded Fund (ETF), which was recently featured in our news coverage. Additionally, he highlighted the rising institutional demand for ADA and how whales have been accumulating the dip. As confirmed in our earlier post, a whale recently acquired 180 million ADA right after the asset declined to $0.72.
First off, I bought more ADA today, and trust me, I know, trust me, I do know, especially when I buy, it’s usually not the bottom. Amidst the backdrop of this, the social metrics of ADA have reached a significant level as positive sentiments “build around the token.” As indicated in our recent discussion, this level is currently the highest in four months.