If You’re Still Holding Cardano (ADA), You Must Watch This

Cardano holders may be facing a critical moment as crypto analyst Ali Charts warned that the cryptocurrency could be on the verge of a deeper correction. The analyst urged investors to pay close attention to ADA’s price action, arguing that a key technical pattern has increased the likelihood of further downside movement.

The warning came alongside a video analysis in which Ali Charts outlined what he believes is a bearish setup developing on Cardano’s chart.

According to the analyst, the digital asset spent the first part of the month forming a bearish flag pattern, a technical formation that traders often associate with the continuation of a downward trend.

Ali Charts Identifies Bearish Flag Breakdown

In the video attached to his X post, Ali Charts explained that Cardano’s sharp decline between June 3 and June 6 laid the foundation for the pattern. He noted that the roughly 30% drop during that period created what traders called the “pole” of the bearish flag.

Following that decline, ADA entered a consolidation phase, moving within a relatively narrow range. Ali Charts stated that this period of sideways trading formed the flag portion of the pattern. According to his analysis, the structure suggested that Cardano could be preparing for another leg lower.

The analyst argued that the situation became more concerning after ADA broke a key support level below. He specifically pointed to the loss of the 17-cent level, which he described as an important support zone for the asset.

According to Ali Charts, the breakdown significantly increased the probability of a larger correction. Based on his analysis, Cardano could now be on course to decline toward the 13-cent level if bearish momentum continues to build.

Market Participants React to the Forecast

The analysis quickly attracted reactions from members of the crypto community, with some agreeing that Cardano’s chart remains vulnerable to further downside pressure.

Among the responses was a comment from ARHANT Academic, who suggested that the analyst’s bearish outlook may ultimately prove accurate. However, the commenter projected an even steeper decline than the one outlined by Ali Charts.

“This time, he’s correct in direction at least. But it’ll sail straight past $0.13 and hit nearer to $0.02. Then it’s pretty much game over,” the commenter wrote.

While Ali Charts focused on a potential move toward $0.13, the response highlighted the range of opinions currently surrounding Cardano’s near-term trajectory. For now, traders appear to be watching whether ADA can stabilize after its recent weakness or if the bearish flag breakdown identified by the analyst will lead to the deeper correction he has projected.

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.

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