Is Selling ADA Now a Wise Decision? Cardano Price Forecast
Over the weekend, Cardano’s price saw a significant drop after a strong rally to a multi-year high of $1.1500. It fell sharply to $0.95, the lowest point since last Thursday.
There are a few reasons behind this recent slump. Firstly, the sell-off followed the performance of Bitcoin and other altcoins, with Bitcoin dropping from $99,600 to $96,000. This decline led to more sell-offs in the crypto space, affecting coins like Avalanche, Ethereum, and Sui.
Secondly, ADA’s drop can be attributed to profit-taking after a substantial rally over the past few weeks. The coin had surged by nearly 260% from its low in October to its peak this month, often followed by a temporary pullback.
Additionally, ADA’s price fell due to mean reversion, a situation where an asset aligns with its moving averages. ADA would need to drop by around 44% to hit its 50-day moving average and by 55% to reach its 200-day MA level.
Despite these recent fluctuations, many crypto analysts believe that ADA still has room for further growth. Analyst EL highlighted that the current pullback is a normal part of the process, pointing to previous bullish cycles where the coin consolidated below $1 before surging to $3, its all-time high.
Another analyst, Trend Rider, predicted that ADA would experience more volatility before resuming its upward trend. Such large swings are common, especially after a strong triple-digit move in price.
Technically, it is expected that ADA’s price could drop to the key support level at $0.8100. So, if you’re considering selling ADA now, it might be worth holding on for potential future gains as the coin navigates through these fluctuations.
