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Cardano (ADA) is Nearing a 45% Price Crash Setup If This Happens
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Key Points:
- Cardano’s double top pattern suggests a potential 45% decline if ADA breaks below $0.705 support.
- Whale selling and weakening RSI reinforce the bearish outlook for the coming months.
- Cardano confirmed a NASA collaboration, but its short-term impact on ADA’s price remains uncertain.
Cardano’s (ADA) price chart on the weekly timeframe signals a potential bearish reversal if it breaks below key support of its prevailing technical pattern.
ADA is Risking a 45% Decline By June
The pattern forming is a double top, a classic technical indicator suggesting a trend reversal from bullish to bearish. The two peaks, marked as Top 1 and Top 2, align closely near the $1.186 resistance level, indicating a struggle for buyers to push beyond this threshold.
The neckline support sits around $0.705, a crucial level to monitor. If ADA breaks below this zone, it could confirm the double top formation, potentially triggering a sharp decline toward $0.39, the projected downside target based on the pattern’s height, by June.
That marks a potential 45% decline in the coming months.
Technical indicators further support caution. The Relative Strength Index (RSI) hovers near 56, reflecting weakening momentum after peaking in overbought territory.
Additionally, ADA’s price tests the 50-week exponential moving average (EMA) at $0.668, with the 200-week EMA at $0.545 acting as deeper support. A close below these moving averages could reinforce bearish pressure.
If the bulls defend the neckline, ADA could attempt another breakout. However, a confirmed breakdown risks accelerating sell pressure, dragging the price toward lower support levels.
Cardano Confirms NASA Collaboration
The technical bearish outlook for ADA appears against persistent selling by Cardano whales in recent weeks, reiterating the downside bias.
On a brighter note, the Cardano Foundation has confirmed collaborating with the National Aeronautics and Space Agency (NASA), with its CEO Frederik Gregaard claiming:
“We’re working with NASA on track and trace, data provenance, and satellite data. $ADA can do Merkle Patricia Tries (MPTs); we put the entire Bitcoin protocol on #Cardano. Every single Bitcoin TX is automatically recorded.”
Institutional or government collaborations usually bring credibility but don’t necessarily translate into immediate buying pressure.
About the Author
Bob MasonChief Crypto Boss
TEST 30 He has written extensively for a broader audience and his current focus is on developments relating to the financial markets including, but not limited to currencies, commodities, alternative asset classes, and global equities.
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