Latest, hurry to see Cardano (ADA) may drop 15%, the reasons are as follows

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Today, on December 22, 2024, the entire cryptocurrency market is struggling, and Cardano (ADA) is expected to drop significantly after forming a bearish price action pattern. According to data from on-chain analytics company Coinglass, traders and investors seem reluctant to participate in altcoins in this mild bearish market sentiment.

Analyzing recent on-chain indicators and technical analysis suggests that Cardano (ADA) has a bright outlook. While long-term holders show optimistic sentiment, a large outflow of funds from exchanges is clear evidence, but technical patterns indicate a potential bearish trend in the short term.

Cardano (ADA) technical analysis and upcoming levels

According to CoinPedia's technical analysis, ADA is showing a bearish trend as it has successfully broken through the head and shoulders price pattern and recently re-tested that level. This re-test of the breakout level partially confirms that ADA's price is about to decline.

According to technical analysis, altcoins are likely to fall 15% to the next support level of $0.80. If this sentiment remains unchanged, ADA will easily achieve the predicted target.

Optimistic on-chain indicators

According to Coinglass, although the technical analysis is bearish, long-term holders seem optimistic about ADA. Based on ADA's spot inflow/outflow data, exchanges witnessed a significant outflow of ADA worth $200 million in the past week. However, despite the significant price drop, there haven't been any inflows during this period.

This trend indicates that the assets of long-term holders are flowing out of exchanges. This suggests that investors are bullish and accumulating tokens during the price crash, indicating potential upward momentum and ideal buying opportunities.

Current price momentum

As of the time of writing, ADA is trading at around $0.89, having dropped over 5.5% in the past 24 hours. During the same period, its trading volume decreased by 45%, indicating a decline in engagement from traders and investors as prices continue to fall.

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