Cardano (ADA) is currently in a critical phase that could affect its short-term gains. As the price moves within an ascending channel pattern, it’s important to note that this setup resembles a rising wedge, a pattern often viewed as a bearish reversal signal.

Potential Price Movement

• Upper Trendline Target: This week, ADA’s price may climb toward the wedge’s upper trendline, expected to be around $0.40. This level coincides with the 200-day exponential moving average (EMA), a key indicator for traders.
• Bearish Breakdown: Rising wedges typically end with a breakdown. If ADA breaks below its lower trendline, the price could fall significantly. Analysts suggest a target range between $0.25 and $0.30, indicating a possible decline of 17-29% from current prices.

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Current Performance

• Current Price: As of now, ADA is trading at $0.35. The coin has experienced a 10% decline over the past week.
• Trading Volume: Daily trading volume has dropped by 27%, indicating decreased market activity.

Analyst Insights

• Concerns About Further Declines: Analyst Alan Santana warns that ADA's correction might not be finished. He points out that ADA did not retest a crucial resistance level at its MA200 trendline during its last rally.
• Possible Pullback: If the downward trend continues, Santana predicts that ADA could fall to around $0.2367 before any potential rebound.

For more in-depth analysis, check out our detailed ADA price prediction.