Cardano’s price has recently faced significant downward pressure, dropping to $0.6065, a 40% decrease from its August highs.
The formation of a death cross and a decline in the odds of an ADA ETF approval have raised concerns of further losses. Technical analysis suggests that Cardano could face a 20% drop in the near term, with its next target at $0.50.
Cardano Forms Death Cross Pattern, Pointing to Further Decline
Cardano’s price has shown a bearish trend on the daily chart, dropping from $1.0196 in August to $0.6065.
The recent dip below $0.6858 has formed a death cross, a pattern that typically signals further downside. This occurs when the 50-day and 200-day Exponential Moving Averages (EMA) cross each other, suggesting weaker momentum.
Historically, the death cross has been followed by sharp declines in the price of Cardano. The last time this pattern formed, ADA experienced a double-digit percentage drop.
In addition to the death cross, Cardano has formed a head-and-shoulders pattern. This is another bearish indicator, further supporting the possibility of continued downward movement.
The coin is now approaching its ultimate support level according to the Murrey Math Lines.
If this support fails to hold, ADA could potentially fall further, with analysts targeting a price of $0.50. This represents a 20% drop from the current level, aligning with other technical indicators that suggest Cardano may continue its decline.
Falling ADA ETF Approval Odds Contribute to Negative Sentiment
Another factor contributing to Cardano’s recent struggles is the declining odds of an ADA ETF approval. While Cardano has a $24 billion market cap, it has only received one ETF application from Grayscale, unlike other top coins such as XRP and Solana, which have received multiple applications.
Data from Polymarket shows that the odds of an ADA ETF approval have fallen to 68%, down significantly from 96% in September. This decline is occurring as other assets like Solana and Hedera have seen their funds begin trading.
The decrease in ETF approval odds has added to negative sentiment surrounding Cardano, potentially increasing pressure on the price.
Despite these setbacks, there remains a possibility that the Grayscale Cardano ETF may be approved by the end of this year. However, Cardano has faced challenges in attracting interest from issuers due to ongoing concerns about its ecosystem.
With a total value locked (TVL) of under $300 million, Cardano is still struggling to establish a more active ecosystem compared to other networks like Ethereum, Solana, and Binance Smart Chain (BSC).
Cardano Faces Bearish Outlook Amid Weak Market Conditions
The broader market conditions have also contributed to the bearish outlook for Cardano. Furthermore, Cardano’s lack of active development and ecosystem growth has kept it behind other major blockchain networks in terms of adoption.
Unlike Ethereum or Solana, Cardano’s ecosystem is not seeing significant growth, which limits its appeal to investors.
For now, technical indicators and the declining ADA ETF approval odds point to a continued bearish trend for Cardano. However, if the coin can break above the $0.6858 resistance level, the outlook may shift, and ADA could attempt a recovery.
The post Cardano Price Faces 20% Drop Amid Death Cross and ETF Setbacks appeared first on BitcoinLinux .
