Cardano’s May Price Plunge: Analysts Forecast Continued Decline to $0.47

Cardano has seen a significant decline in its price since the start of May, dropping from $0.85 to slightly above $0.50. This decrease represents a 24% drop in value over the last month, as reported by CoinGecko. Despite a brief increase in the second quarter, the token’s price has reverted back to its levels in April, which could indicate a potential for further decline in the near future.

On June 27, analyst Ali Martinez made a pessimistic forecast for the ADA token’s price on the platform X. Martinez’s analysis suggests that Cardano’s price might plummet to approximately $0.47, pointing to a descending channel pattern visible on the three-day Cardano chart. This distinctive pattern features two primary trendlines: a top line serving as resistance and a bottom line acting as support. The formation of this bearish channel typically signals a continuous downward price trend marked by lower highs, offering traders strategic entry and exit points.

Examining Cardano’s price chart reveals a consistent downward trend dating back to November of the previous year. While the token managed to find support near the lower trendline in early April and briefly spiked above $0.80, it struggled to breach the upper trendline by the beginning of May. Since then, Cardano’s price has been on a steady decline. Martinez’s analysis anticipates that the ADA token could potentially drop to as low as $0.47, finding crucial support near the lower trendline. Moreover, the 1.272 Fibonacci level, a significant indicator in technical analysis for establishing price targets and support or resistance levels, aligns closely with the lower trendline, signaling the possibility of Cardano’s price dropping below its current level.

At present, the ADA token is valued at roughly $0.56, reflecting a slight 1.3% increase in price over the last 24 hours. However, on a broader scale, Cardano’s price has fallen by over 3% in the past week according to CoinGecko. This persistent volatility underscores the challenges that the Cardano network and its affiliated token, ADA, are grappling with amidst the ongoing market fluctuations.