Cardano price prediction: 40% ADA rally encounters obstacles as retail confidence decreases
to position closures and lower leverage.
Despite the positive momentum in network activity, Cardano price faced a setback as it dropped by 1.5%, erasing gains from the previous day. Currently, ADA price struggles to break past a descending wedge pattern, casting doubt on an expert’s prediction of a 40% rally.
While on-chain volume has seen a significant increase in the past few weeks due to the launch of the Midnight sidechain, market sentiment remains cautious. Traders are hesitant, leading to a bearish market trend, as indicated by futures data.
The optimism surrounding Cardano’s ecosystem remains high, with transaction volumes hitting a monthly peak of $19.74 million on December 10. Crypto analysts like CryptoClue are still convinced of a potential 40% price rally for ADA.
Despite a surge in trading volume and the number of unique wallets, derivative market sentiment paints a different picture. Traders maintain a defensive stance, suggesting a bearish bias in ADA’s price.
Looking closely into ADA’s price prospects, futures open interest for ADA fell by 1.57% to $666.25 million within the last 24 hours, indicating position closures and reduced leverage. Additionally, funding rates remain negative, with traders willing to pay a premium to maintain short positions.
The ADA price chart shows the cryptocurrency trading within a descending wedge pattern, with support levels around $0.3415 and resistance near $0.4350. Despite recent losses, there is potential for a bullish breakout if buying pressure increases.
Key technical indicators like the RSI and MACD suggest a potential reversal in ADA’s price, with the RSI rising to the oversold region and the MACD nearing a bullish crossover. Traders are closely monitoring these levels as potential short-term floors for ADA’s price.
In conclusion, while the 40% rally predicted by experts remains in jeopardy due to prevailing market conditions, the overall outlook for Cardano remains positive. Despite short-term fluctuations, the increased network activity and positive price indicators suggest potential growth for ADA in the near future.
