Following the rejection from a lower trendline retest earlier in the week, a top market analyst has highlighted three targets for a Cardano price downtrend.
ADA permabull Dan Gambardello identified these targets in his recent analysis, as Cardano saw lower prices in the past 24 hours. The altcoin shared in the ongoing crypto market downtrend, further correcting by 3% on Thursday.
Notably, the downside followed a rejection after an attempt earlier in the month to reclaim a lower support trendline around $0.90. With Cardano now losing the 20-day and 50-day moving averages, Gambardello has highlighted three levels it could retest if bearish momentum persists.
Three Cardano Targets
The closest support Cardano could dump to is the 0.786 Fibonacci level between $0.810 and $0.785. Notably, ADA currently trades around the support level, and its price action will determine whether a rebound or lower prices will follow.
If the support level fails, the analyst highlighted that the second target is the 200-day moving average at $0.74. A correction that steep would entail another 9.4% decline from the current market price of $0.817.
Meanwhile, his last target is a key support area around the mid-$0.60s, particularly around $0.62. While he noted that he does not want to see this happen, he maintained that it is the target for a technical move following a price breakdown.
Cardano Upside Still Possible
Nonetheless, Ganbardello did not entirely rule out a price rebound. In fact, he predicted how it could happen, but he advised great caution, as the market shows clear signs of a bearish trend.
Specifically, he noted that a bullish reversal could happen depending on how Cardano reacts with the current Fibonacci support. The market watcher pointed out that a rebound from the area would set things up for a retest of the lower trendline, where it was rejected earlier in the month.
He emphasized that Cardano’s reaction to reaching the trendline would determine whether a market shift would occur. A breakout would indicate bullish momentum for a rally to higher prices, while another rejection may confirm resistance, leading to a sideways trend.
Additionally, he shared that a move towards $0.87 would be a positive sign for Cardano. According to him, reclaiming the price level could be the start of a reversal move for the cryptocurrency.
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