Cardano could extend its decline toward $0.1537 as bearish momentum persists, according to top analyst ZenTrades.
Taking to X recently, ZenTrades warned that Cardano could plunge further after losing 21% in October and slipping below the $0.20 level. During the decline, ADA broke below the $0.2019 support, signaling a bearish shift in its price structure.
ADA Trades Below Key EMAs
The accompanying chart shows ADA trading at $0.1925 at the time the outlook was published. Moreover, ADA remains below $0.21 and $0.24, which corresponds with the 50-day and 200-day EMAs levels, respectively.
Meanwhile, the chart identifies $0.1894, which corresponds to the August 30 low, as immediate support. If ADA breaks below this level, it could decline further toward $0.1712, the August 18 low. A deeper correction could then expose the late-July support level at $0.1537, according to ZenTrades.
The bearish outlook was also reinforced by several momentum indicators. Cardano’s daily RSI stands at 32. At the same time, ZenTrades noted that Cardano’s MACD sits below zero, signaling persistent downward momentum.
ADA Could Drop Another 18% to $0.1537
ZenTrades’ latest projection follows an earlier warning that Cardano could fall to $0.1894.
However, ADA subsequently extended its decline, reaching $0.1869 in the hours leading up to publication. From that price, it would need to fall another 8.40% to reach $0.1712. A further decline to $0.1537 would represent a drop of 17.77%.
These projections highlight the risk of additional losses if ADA fails to hold its remaining support levels. Nevertheless, the identified targets remain potential downside levels rather than guaranteed outcomes.
Broader Market Weakness Adds to ADA’s Downside Risks
Cardano’s latest weakness also coincides with a broader crypto market downturn. Uncertainty surrounding the U.S. midterm elections and institutional outflows from crypto exchange-traded funds (ETFs) have contributed to the negative market backdrop.
Over the past 24 hours, Bitcoin, Ethereum, and XRP declined by 2.02%, 1.56%, and 0.36%, respectively. ADA, meanwhile, fell by a steeper 2.4%, indicating that it underperformed these major cryptocurrencies during the period.
Another Analysis Identifies $0.25 as Key Resistance
Meanwhile, a separate analysis highlighted by The Crypto Basic points to Cardano’s prolonged bearish structure, with ADA trading inside a descending channel on the weekly chart.
According to this outlook, ADA needs to rally toward $0.25 to challenge a major resistance level. A decisive breakout above this threshold could open the way toward higher resistance levels, with $3 representing a longer-term target.
However, ADA would need to overcome several resistance barriers before reaching these levels, and the broader bearish trend could continue to hinder its recovery.