Cardano (ADA) may face a 20% decline as the price possibly broke the lower boundary of the ascending parallel channel in which it has been trading since late June. Cryptocurrency analyst Ali noted that during this period, ADA rose from $0.138 to $0.282. The $0.220 level serves as a key resistance zone: as long as it holds, ADA could decrease by approximately 20% to $0.166.
Data shows that the positions of large investors holding between 100 million and 1 billion ADA have remained relatively stable over the past 10 days, indicating no clear directional signal. Additionally, the SuperTrend indicator on the ADA chart has turned bearish. A similar signal was recorded on May 22 and led to a 46% correction, making the current signal noteworthy.
At the time of writing, the price of ADA has decreased by 4.03% over the past 24 hours to $0.20 and has fallen by 6.05% over the week, continuing the decline since October 21. In positive news, the launch of the public testnet Dijkstra expands the testing of the next major Cardano update.
According to the technical scenario, the decline may continue to $0.21, the lower boundary of the ascending channel. Closing the daily candle below this boundary would signal a breakout and open the path to $0.17. Meanwhile, the $0.220 level remains key resistance: as long as it holds, ADA could decrease by approximately 20% to $0.166.
This material is prepared solely for informational purposes and does not constitute financial advice or a recommendation.