A deep correction is coming for Cardano, according to a recent analysis, with the downside target being a price level last seen in late 2020.
Cardano could correct harder, analyst “Behdark” stated in his recent TradingView price outlook. He noted it was time to “stop being a Cardano holder,” projecting a bearish price target never seen in the last five years.
ABC Correction Targets Massive Decline
Cardano trades at $0.635, down 10% in the past seven days. However, this would be minor compared to what the analyst predicted is on the horizon for Cardano.
The pseudonymous commentator identified that Cardano has been following an ABC correction pattern, with the correctional wave C about to start. Notably, the pattern’s origin came from its 2021 all-time high of $3.10, with the first correction wave (wave A) pushing ADA from that peak to $0.239.
Meanwhile, wave B began with Cardano forming an expanding ascending triangle on the weekly chart. The token continued to make higher highs and higher lows within the structure until it reached the current area, which Behdark marked as the end of this phase.
Notably, the supply zone, highlighted in red, is the area where the wave C correction would start, pushing prices lower. The analysis asserted that Cardano’s price would remain bearish for several months, from the start of this wave until its completion.
Wave C to End at This Demand Zone
Furthermore, the market watcher predicted that the target for the wave C correction is the demand zone between $0.127 and $0.180. From the current market price of $0.635, this would culminate in a 71.6% to 80% correction.
Notably, Cardano last trended this low during the previous cycle, specifically between November and December 2020.
However, the market commentator predicted that a close above the $1.040 price level on the weekly timeframe would invalidate this bearish move. This area lies just 64% away from the current price level.
Conflicting Cardano Views
Meanwhile, the bearish outlook is a sway from the predominant bullish sentiment among market analysts. This unwavering bullishness comes even as Cardano trends downward.
For instance, Lark Davis highlighted an imminent golden cross, one that pushed ADA up 60% the last time it happened. Dan Gambardello also identified a double-bottom Bollinger Band formation targeting higher prices upon confirmation.
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.
