- Dan Gambardello warned in his latest analysis that ADA could suffer a 20-27% drop in price soon.
- ADA recorded a new higher low on its weekly chart, which may trigger a wave of profit-taking from traders.
- At press time, ADA was changing hands at $0.5551 after it dropped more than 5% over the past 24 hours.
The cryptocurrency analyst and trader Dan Gambardello warned in his latest analysis that Cardano (ADA) may be at risk of correcting 20-27% soon. His prediction comes after the altcoin was able to record a higher low on its weekly chart which is higher than the previous “swing high.”
Despite the potential for a strong pullback in ADA’s value, the analyst did not outweigh the possibility of ADA’s price continuing its climb. In this bullish scenario, his upside target is at $0.65. One thing to take note of, according to the analyst, is that ADA has entered overbought territory.
Although an altcoin entering overbought territory is not a definitive sign that a correction will take place, he shared that the chances of a price drop have increased. Should this technical flag be validated, ADA could look to target immediate support at $0.54. This could then be followed by a strong move down.
Although ADA’s charts suggest a short-term correction is likely, there is still the multi-month upside target at $0.85 that is still in play. Gambardello shared that it may take a while for ADA to rise to this price point, given the fact that it is still forming the structure for this potential move.
ADA saw its price drop more than 5% over the past 24 hours, according to CoinMarketCap. This brought its price down to $0.5551 at press time. Despite the 24-hour loss, the cryptocurrency’s weekly performance remained well in the green at +35.40%.
Along with the latest drop in price, the altcoin also experienced a decrease in its 24-hour trading volume. CoinMarketCap data indicated that the total volume for ADA stood at $1,298,135,749, which was 40.39% down from what it was in the previous 24-hour cycle.
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