Crypto currency world ADA investors have been waiting for a $1 price tag for a long time. However, a metric emphasizes that ADA price might follow a downward trend before this price tag is achieved. Such an occurrence would mean a 50% decline in ADA price. Let’s examine the details of such a risk together.
New Risk Emerges for Cardano
The crypto channel More Crypto Online stated that Cardano’s (ADA) bottom level has not yet been reached and another decline could happen soon. During a session broadcast on YouTube, the host mentioned that the Elliot Wave Theory signaled this.
According to the channel’s explanation, the metric indicating this decline observed “just a three-wave corrective rally. Such rallies usually do not show an upward trend and there is a situation where ADA might show a downward break or horizontal trend.”
Sellers on the Aggressive Side
Elliot Wave is a technical theory analyzing price movements. This allows traders to identify the peaks and troughs of cycles. However, More Crypto Online mentioned that ADA falling below the $0.48 support indicates the end of the uptrend.
In this case, it is likely that the price will move downward from Wave 5. This could largely indicate a decline and could pull Cardano’s price down to $0.42. Currently, the crypto currency ADA’s price is at $0.45 and has experienced a 2% decrease in the last 24 hours.
Cardano Shows Decline Trend as Open Interest Drops
An increase in the indicator usually reflects an increase in net buying positions. This situation shows that buyers, i.e., long-focused position holders, are more active. However, Cardano’s open interest (OI) value was $548.6 million while writing this.
The figure shows a decrease compared to the value seven days ago. In this case, it is possible to say that sellers, i.e., short-focused position holders, are more active. If this decline is not controlled, the accuracy of the $0.42 prediction can be confirmed.
Although the data points to such a level for ADA, it is necessary to mention that the price movement of the cryptocurrency ADA could change depending on Bitcoin. Such a situation will inevitably invalidate this bearish thesis.
