Crypto Expert Predicts 61% Cardano Crash, Urges Massive ADA Short

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As a seasoned crypto investor with a knack for spotting trends and reading between the lines of developmental milestones, I find myself intrigued by the enigma that is Cardano (ADA). On one hand, its recent stride towards full decentralization and community-driven governance is undeniably impressive, placing it at the forefront of blockchain innovation. However, the price action has been less than enthralling, to put it mildly.

Opinions among analysts regarding Cardano‘s future direction are frequently split, with some predicting a downward trend (bearish) and others expressing hopefulness over its prospects for expansion.

In a recent development, the team behind Voltaire Chang’s hard fork has achieved a significant step forward in realizing complete decentralization and community control through governance.

In essence, ADA owners now have the power to influence the network’s future direction, emphasizing the importance of its long-term sustainability and robustness. It’s worth noting that while this significant development in the platform’s evolution is underway, the price of ADA remains stable around $0.35, a level it has maintained since early August.

Cardano’s Struggle for Momentum

From March 14th through July 5th, ADA experienced a volatile journey, peaking at nearly $0.80, but then plummeting to $0.32. This downturn was temporarily reversed with a 42% rise to $0.45 on July 17th. However, the gains were quickly erased as the price dipped again to a new low of $0.27 by August 5th.

As an analyst, I experienced a momentary surge of optimism when the price reached $0.40 on August 24th. However, this hope was swiftly dampened as the price started to reverse and plummeted below the psychologically significant $0.35 level. This unexpected breakthrough had initially been perceived as the commencement of a local uptrend.

As an analyst, I find myself observing that the altcoin is currently trading above $0.35. However, its failure so far to maintain a strong uptrend implies a possible continuation of its bearish trend, which might lead to further potential decreases.

Crash to $0.15 Despite September Surge?

Although ADA showed impressive results by the end of September, certain market experts continue to express doubts and suggest selling (shorting) ADA. They argue that the strong bullish trend has not fully returned to the market yet.
Market analyst RayTrader recently revised his pessimistic outlook for Cardano (ADA) on TradingView. He recognized ADA’s rise to around $0.40 on September 26, but he continues to foresee potential drops reaching as low as $0.16 and $0.15 before potentially transitioning into a bull market.

The current Cardano price is $0.35, and a slip back to this level would represent a 61% loss for investors today. While ADA has not been at this level since December 2020, it can still happen, says RayTrader. A crash to this range amidst the present uptrend sentiment.
As an analyst, I’ve adjusted my bearish perspective on Cardano (ADA), indicating that falling below the $0.40 mark presents a promising moment to initiate a short position. My forecast points towards a near-term goal of $0.25. With ADA currently dipping to $0.3718 due to Monday’s marketwide decline, I continue to believe that short sellers should hold onto their positions, as there seems to be significant potential for further descent before the anticipated local bottom at $0.15 is reached.
This bearish expert suggests that traders who have profited from shorting ADA might consider selling some of their positions gradually. However, he believes that the largest profits are yet to come for those who stay patient, as the $0.15 target is reached. Consequently, he anticipates this level could mark the base and potentially set the stage for a major bull market surge.
Bearish Price Action, Bullish On-Chain Growth
RayTraderhe remains significantly bearish on ADA, but other market analysts hold a bullish outlook.
Although the price fluctuations of Cardano may seem unexciting, noted crypto expert @CryptoFaibik highlights that its network is anything but. Marking seven years since the mainnet was activated without a single minute of interruption, ongoing advancements within the chain guarantee steady and continuous growth.

ADA weekly development report of last week shows a 4.24% increase in the number of projects building on the blockchain, at 1,376, pointing to high developer activity. The number of native tokens on the network also increased by 9.7% to stand at 10.40 million, with token policies surging 78.8% to hit 168,811.
The token gains new attention, potentially impacting its value due to the much-anticipated launch of the Midnight Protocol’s testnet. As per recent reports, developers can now interact with the Midnight Protocol as it is now active, signifying that a significant milestone for the platform has been achieved.
Additionally, it was noted that the rate at which smart contracts are being deployed is on the rise, currently standing at 88,340 active Plutus scripts – a significantly greater figure. Moreover, transaction volume surged from 82.7 million to 96.94 million last month, suggesting a growing acceptance of the Cardano system.

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2024-10-02 00:18