Analyst Warns Cardano Price Could Plunge 90% as Whales Exit
Cardano price recently rose by 1.8%, giving investors some hope, but cryptocurrency critic Max Keiser warns that a 90% crash could be coming. While this prediction seems extreme, it’s important to understand the details behind it and what it could mean for Cardano’s future.
Expert Maxi Keiser Predicts 90% Crash for Cardano Price
A recent tweet by Bitcoin Maxi Max Keiser said the ADA price will lose another 90% compared to Bitcoin in the next six months.
Cardano (ADA) will lose another 90% vs. Bitcoin over the next 6 months. pic.twitter.com/jQHhJg1m59
— Max Keiser (@maxkeiser) October 5, 2024
However, if ADA/USDT were to drop 90% from its current price, it would be trading at $0.03, and its market cap would shrink to $1 billion. This is unlikely, given Cardano’s recent network developments and the overall bullish sentiment in the crypto market following Elon Musk’s support at Donald Trump’s rally.
The Cardano community responded to Keiser’s post, citing that if the ADA price drops 90%, it would present a great entry position.
Cardano whale activity increased over the last 48 hours, but according to IntoTheBlock (ITB) data, the volume increased in the wrong direction. The total large transaction count increased from 311 to 337 between October 5 and 6, but the whale netflow dropped from 27,000 ADA to -3.11 million ADA ($1.1 million). This suggests that whales may be offloading their ADA.
Additionally, a look at the Coinglass Liquidation map shows that derivative traders are overwhelmingly bearish on Cardano price in the daily, weekly, and monthly timeframes as the cumulative Short Liquidation Leverage is higher than the Longs equivalent.
These imbalances suggest that the dominant sentiment in the market is bearish, as traders anticipate the Cardano price will drop lower in the future.
With these metrics and statistics, Keiser’s prediction looks more likely to happen than not. Unless market conditions change, the ADA price may continue dropping for the foreseeable future.
ADA Price Analysis: What Next for Cardano?
Cardano price is trading in a range-bound condition, with a resistance zone near $0.37 and support levels at $0.32.
There is resistance at $0.37 and then a more significant level around $0.40, which has been tested previously. Conversely, $0.32 marks a key demand zone where the price bounced off in the past, acting as a solid floor.
The red resistance zone acts as a supply zone, where selling pressure may intensify. Bearish pressure is indicated by the downward arrow, suggesting potential retesting of lower levels like $0.32.
A rejection from the current levels would lead the price to test the $0.32 support zone. Failure to hold $0.32 could lead to a more significant bearish movement, targeting levels below $0.27.
That said, for Keiser’s prediction to come true, there would need to be a black swan event or the Bitcoin price to go parabolic in the next 6 months.
Cardano Price Analysis Chart
If the ADA price breaks and sustains above $0.37, expect a potential move toward $0.40, which is the next resistance. A confirmed close above $0.40 would shift momentum to a more bullish outlook, pushing the Cardano price 29% to $0.50.
The post Analyst Warns Cardano Price Could Plunge 90% as Whales Exit appeared first on CoinGape.
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