$ADA $BTC #Cardano #Crypto #Blockchain #Investing #Altcoins #Cryptocurrency #MarketAnalysis #DeFi #Whales #TechnicalAnalysis #PricePrediction
Will Cardano (ADA) Hit $1 After Plunging 12%? What Analysts Predict Next!
Analysts news suggests that Cardano (ADA) has experienced a significant downturn, dropping approximately 27% over the past week. This decline has seen ADA slip below the crucial support level of $0.66, coinciding with a broader risk-off sentiment gripping the cryptocurrency market. The downturn in Bitcoin, which has slid toward $104,000, is exacerbating the situation, leading to reduced liquidity in altcoins and prompting large holders to adopt a more defensive stance.
The recent data from Santiment indicates that wallets holding between 1 and 10 million ADA have sold off around 40 million ADA in just seven days. Concurrently, broader whale distribution reached 350 million ADA, which has placed additional downward pressure on the asset’s price. In contrast, large wallets accumulating between 140 and 200 million ADA have created a split dynamic, resulting in choppy price consolidation within the $0.65 to $0.70 range.
Market Sentiment and Derivatives Trends
Adding to the cautious market sentiment, Cardano’s open interest has decreased by 2.12% to $669.9 million. Long liquidations amounting to $1.13 million overshadowed shorts, which totaled just $187,000. This trend signals that bulls have faced significant challenges during this price flush. Analyzing the 4-hour chart reveals that ADA is forming a falling wedge, but a breakout above $0.74 is essential for confirmation. Until that occurs, momentum indicators remain mixed: the Relative Strength Index (RSI) is at 37—approaching oversold territory—while the Chaikin Money Flow (CMF) between 0.12 and 0.15 hints at potential spot inflows that have yet to surpass the supply from large holders.
Downside Risks and Potential Rebound
Technical analysts are flagging a “risk-first” outlook for Cardano. If the price fails to hold $0.66, it could test $0.65, with further dips potentially reaching $0.62–$0.60 and possibly even $0.57 if the broader crypto market remains weak. A more substantial shakeout could lead to a probe of $0.53. On the upside, ADA must reclaim $0.66 and subsequently break through the $0.74–$0.80 range, which includes the 50-day exponential moving average (EMA) cluster, to regain trend strength. If these levels are surpassed, bulls might target $0.86, with a psychological $1.00 retest becoming plausible in Q4 if risk appetite and capital flows improve.
Several analysts still view the potential for ADA to reach between $1.20 and $1.60 upon a confirmed breakout. However, many caution that the market may experience further dips before any significant recovery, primarily due to leverage resets and uneven liquidity. Key factors to monitor include ETF developments—especially the upcoming Grayscale ADA ETF decision window on October 23—as well as stablecoin and ETF net flows, and the behavior of whale selling.
Ecosystem Growth Amidst Price Challenges
Despite the current price struggles, it’s noteworthy that Cardano’s community treasury has exceeded 1.6 billion ADA, valued at around $1 billion. This treasury is funded through fees and staking rewards, governed by Project Catalyst. This initiative supports tooling, decentralized finance (DeFi), and infrastructure development, free from the constraints of venture capital influence.
Furthermore, new staking access options—like the recent inclusion of eToro U.S.—and ongoing projects such as Midnight and Leios continue to broaden Cardano’s roadmap. However, the total value locked (TVL) remains at $288 million, which lags behind that of larger blockchain networks.
For those looking to stay updated on the latest in cryptocurrency, consider exploring more cryptocurrency insights here. Additionally, if you’re interested in trading, check out the offerings on Binance for potential opportunities.
In conclusion, while Cardano faces significant challenges in the short term, the underlying ecosystem and community initiatives remain robust. The interplay of market sentiment, whale activity, and macroeconomic factors will be crucial for ADA’s trajectory moving forward.
Comments are closed.