Cardano (ADA) in Danger? Analyst Predicts Possible Correction Soon
Cardano (ADA) is trading near $0.39 after slipping by just over 3% in the last 24 hours. The price has moved within a narrow range this week, gaining less than 1%.
Meanwhile, the token remains the 12th largest cryptocurrency, with a market cap of over $14.4 billion and a circulating supply of 37 billion ADA. While sentiment remains mixed, recent chart patterns are drawing attention.
Analyst Sees Possible Correction Ahead
Chart analysis from Man of Bitcoin suggests ADA may still be in a corrective phase. According to the wave count shared, the first one has completed, and the current move could be part of a larger wave (2) correction. The asset is hovering below the $0.438 level, which the analyst marks as key.
If that view holds, the next leg could send the price lower, possibly into the $0.379 to $0.345 zone. These areas may offer support, but any drop below them would weaken the short-term structure.
On the weekly chart, ADA continues to trade within a symmetrical triangle. The lower support trendline around $0.39 has been tested multiple times but has not broken. The upper trendline remains untouched, keeping the structure tight and undecided.
Cardano (ADA) Price Chart 1.16. Source: TradingView
The price is still below key moving averages. This keeps the broader trend cautious. The MACD also shows weak momentum, with the signal line staying above the MACD line and red histogram bars continuing. For now, sellers remain active, but pressure has not accelerated.
Bullish Pattern Forms Under Resistance
At the same time, a cup-and-handle pattern is forming on lower timeframes, according to analyst Ali Martinez. This pattern is considered bullish if confirmed. The neckline sits around $0.423. If the price breaks above this level, the next target could reach $0.517. The handle portion is forming between $0.387 and $0.404.
Interestingly, this structure and its similarity to historical setups led to rallies in other markets. The pattern remains valid as long as the price holds above the handle range.
Despite the recent dip, on-chain data points to reduced sell pressure, as previously reported. Exchange flows show more ADA moving off platforms, typically a sign of investor confidence. CoinMarketCap data places ADA among the most positively rated coins by community sentiment.
Meanwhile, CME Group is preparing to list ADA futures, with trading expected to begin on February 9, pending approval. This places Cardano alongside other major altcoins already available in US derivatives markets.
The post Cardano (ADA) in Danger? Analyst Predicts Possible Correction Soon appeared first on CryptoPotato.
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