Cardano (ADA) is one of the most popular cryptocurrencies in the space with a community so loyal that it is sometimes referred to as a cult. This no doubt led to the immense growth that the digital asset recorded back in the bull market of 2021. However, since then, the digital asset has been unable to maintain its value and has declined by more than 87%. Now, it had fallen below another critical technical level.
Cardano Loses $0.4
For the longest time, the price of Cardano (ADA) had been able to maintain above the $0.4 level. This had put it closer to the important technical levels that would either trigger a bearish or a bullish rally. In the end, the digital asset has skewed towards the former.
ADA’s decline below $0.4 marks the beginning of a trend that market analyst Peter Brandt called out last week. Brandt explained that ADA had formed a classic descending triangle which would likely put the digital asset below $0.25. Now, the price of ADA is nowhere near this forecasted level yet but it currently correlates with the bearish forecasts that have permeated the market in the last week.
If there is no reversal from this point, it’s possible that the first phase of the forecast will be quickly met, which is the price falling below $0.35. However, a sub-$0.25 price level still remains a hard-to-imagine point for the digital asset but not impossible.
Time To Buy ADA?
The decline below $0.4 could prove to be a unique opportunity if the circumstances were different. A number of factors make it hard to push this as a ‘buy’ level for ADA. For example, the crypto market is expected the worst phase of the bear market sometime between now and December, which will likely see cryptocurrencies lose more of their value during this time.
ADA falls below $0.4 | Source: ADAUSD on TradingView.com
There has also been no significant momentum in the market that would suggest that a recovery is on the horizon. Right now, the indicators for ADA all skew towards bearish as it is now trading well below its 50-day moving average. It’s more likely to see more decline in price as Cardano would follow the general market trend.
However, the community is still very bullish on the digital asset. Price Estimates from more than 11,000 votes on Coinmarketcap show that, on average, investors expect Cardano’s price to rise another 45% from here by the end of the month. This would put the cryptocurrency at a price of $0.5742 if accurate, a price point that would register a bull trend for the digital asset.
ADA is trending at $0.39 at the time of this writing.
Featured image from NewsBTC, chart from TradingView.com
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