Cardano price struggles in bearish trend, ADA shows weak momentum. Analysts highlight key support levels and potential risks
Cardano price has fallen below the $1 support level amid a general crash in the cryptocurrency market. This drop coincides with BTC’s fall below $100,000, indicating bearish market sentiment. ADA price now appears to be experiencing some correction, building on the bullish trend of the last month. Further declines are possible as market conditions weigh heavily on the cryptocurrency’s short-term prospects.
ADA outflows reach $164 million
Today, December 20, 2024, Coinglass’ ADA Spot Inflow/Outflow on-chain indicator shows that exchanges have recorded a massive outflow of $163.85 million worth of ADA over the past week, despite the altcoin’s continued price decline.
Peter Brandt explains the next chapter in Cardano’s price trend
Crypto expert Peter Brandt expressed his bearish view on the Cardano price on Twitter, predicting that the price could drop sharply. The analyst highlighted a “head and shoulders” pattern on the recent chart, suggesting that the ADA price could drop to $0.91.
Analysis shows that ADA is struggling to maintain its upward momentum, with current market conditions indicating increased selling pressure.
Cardano prices came under pressure after the Federal Reserve cut interest rates by 25 basis points at the end of its December meeting. Although the third consecutive rate cut was in line with expectations, it hinted at fewer rate cuts in 2025, which triggered bearish volatility in the cryptocurrency market. Bitcoin fell below $100,000, while Cardano traded close to key support levels.
It is worth noting that on December 2, the total amount of ADA large transactions reached 15.8 billion US dollars. However, whale investors reduced demand and affected market sentiment. Data shows that as of December 18, the amount of ADA large transactions fell to 2.9 billion US dollars. Compared with the monthly peak, the decline was as much as 13 billion US dollars.
The decline in whale activity has raised concerns about ADA’s support levels, suggesting that market uncertainty will persist into 2025.
ADA Technical Analysis and Upcoming Levels
ADA has successfully retested one of the key support levels of $0.80, a level that was recently touched during the market downturn. However, the price is experiencing upward momentum as interest from traders and long-term holders continues to increase.
Based on the recent price action, if ADA stays above $0.80, there are high chances that it could surge by 40% to $1.23 levels in the coming days.
Can ADA Price Reach $0.5 Following the Bearish Trend?
At the time of reporting, ADA price was trading at $0.885, down 5% in the past 24 hours.
The MACD indicator shows continued bearish pressure. Both the MACD and signal lines are in negative territory, suggesting that sellers are still dominating the market. However, the narrowing histogram suggests that the bearish momentum is fading, indicating a possible consolidation or upside reversal.
If the bearish momentum persists, the Cardano price prediction could break the $0.8 support and could drop to $0.7 or even $0.5. However, if the bullish momentum takes over, ADA could rally to the $1 mark and retest the critical $1.10 resistance.
Cardano price is facing increasing bearish pressure, eyeing critical support around $0.8. Future price action depends on market sentiment, whale activity, and broader cryptocurrency market trends.
Highlights
The Cardano price head and shoulders pattern indicates further bearish price trend.
Large ADA transactions have dropped significantly, reflecting a decrease in whale activity.
Technical indicators show that bearish momentum is fading, suggesting a possible reversal.