- Cardano rejected from lower trendline after failing to reclaim $0.90 support.
- Analyst projects potential correction to $0.62, representing 24% decline.
- Fibonacci levels at $0.808 and $0.785 could provide intermediate support.
Market analyst Dan Gambardello has outlined potential downside targets for Cardano following recent price rejections from key technical levels. The analyst examined ADA’s macro setup and identified failed attempts to reclaim crucial support zones.
Gambardello attributes current bearish trends to price manipulation, arguing that forces are suppressing altcoin breakouts despite increasing institutional and nation-state cryptocurrency adoption. He maintains that market conditions should favor higher prices at this stage of the business cycle.
The daily chart analysis shows Cardano lost support around $0.90 following a 6.7% decline on September 22. Bulls attempted to reclaim this trendline level, pushing prices to $0.89 on October 3 before facing rejection.
Mid-$0.60s identified as primary downside target
The failed reclaim attempt has placed Cardano in bearish territory according to Gambardello’s assessment. The analyst projects a potential correction to the mid-$0.60 range, with specific downside target around $0.62.
This projection represents a 24% decline from current market prices near $0.823. The downside scenario assumes continued pressure on ADA without successful defense of intermediate support levels.
However, Gambardello noted that Cardano may not correct to the full depth of this target. Fibonacci retracement levels could provide support that prevents deeper price declines.
The 0.618 Fibonacci level sits at $0.808, while the 0.786 level is positioned at $0.785. These technical markers could cushion downward price movements and potentially trigger bounce attempts from buyers.
Cardano currently trades above both the 20-week and 50-week moving averages, adding additional support layers. The 20-week moving average stands around $0.770, while the 50-week average is positioned near $0.794.
These moving averages historically serve as dynamic support during price corrections. Their proximity to current price levels suggests potential defense zones if ADA continues declining from present levels.
Technical structure shows multiple support zones
The combination of Fibonacci retracement levels and moving averages creates a cluster of potential support between $0.770 and $0.808. This zone could determine whether Cardano reaches the deeper $0.62 target or stabilizes at higher levels.
Gambardello’s analysis on the 714-day trend chart highlights the importance of the lost $0.90 support level. Reclaiming this area would be necessary to invalidate the bearish scenario and restore upward trajectory.
Current market structure places emphasis on how ADA reacts at the identified Fibonacci and moving average support levels during any continued weakness.
Source: https://thenewscrypto.com/top-analyst-identifies-0-62-downside-target-for-cardano/
