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HomeCrypto NewsMarketMarket Watcher Sounds Alarm for Cardano Price Crash, Here's Why

Market Watcher Sounds Alarm for Cardano Price Crash, Here’s Why

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Cardano (ADA) may be facing a more pronounced downturn in the coming days as a reliable technical indicator has flashed a bearish signal.

Cardano has exhibited volatility in the last 24 hours as the asset breaks below the $0.6 territory it only recently reclaimed. Data from CoinMarketCap indicated ADA reached as low as $0.5793 within the past day.

Besides, the recent trend has invalidated most of ADA’s gains since the past week, putting its one-week performance at a negative growth rate of 3.64%. 

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While the current fluctuations may seem moderate, renowned market analyst Ali Martinez suggests that Cardano holders could anticipate more significant declines soon.

In a recent post on X, Martinez highlighted that a sell signal has emerged for ADA on the 3-day time frame chart.

The analyst referenced the TD Sequential technical indicator as the origin of the bearish signal. He underscored that historically when the indicator flashed a sell signal for ADA, the asset experienced declines.

The chart accompanying the tweet highlighted specific instances where forecasted bearish signals had proven accurate.

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One notable example was the volatility Cardano experienced in January, which resulted in its price dropping to $0.4768. This decline followed a bullish rally that had propelled its price above $0.64 in December 2023.

Meanwhile, the analyst did not indicate how low ADA could fall in the projected price correction.

$8 Outlook Remains Intact

In response to Martinez’s bearish signal, a concerned market participant sought clarification regarding his earlier projections of ADA reaching lofty highs such as $0.8 and $8 during this emerging bull season.

The analyst replied that the projections remain valid regardless of the projected price correction.

Notably, Ali Martinez proposed that history could repeat itself with Cardano’s explosive rally occurring earlier than expected.

He anticipates the asset to initially claim the $0.8 territory, with a potential price correction bringing it back to around $0.6 before ultimately rallying by 1,200% to reach $8.

DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

Author

Abdulkarim Abdulwahab
Abdulkarim Abdulwahabhttp://thecryptobasic.com
Abdulkarim Abdulwahab is a seasoned crypto journalist who has established himself as a trusted voice in the world of blockchain and Web3. His extensive knowledge of the crypto space enables him to break down complex concepts into accessible language.

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