Cryptocurrency analyst Dan Gambardello cautioned that Cardano (ADA) might undergo a correction of 20-27% soon after observing a higher low on its weekly chart compared to the previous “swing high.” Despite the possibility of a significant pullback, Gambardello didn’t rule out ADA’s potential to continue rising, setting an upside target at $0.65. He noted ADA’s entry into an overbought zone, signaling a potential price drop.
While an altcoin in an overbought state isn’t a clear sign of an imminent correction, Gambardello highlighted increased chances of a price decrease. If confirmed, ADA could seek immediate support around $0.54, followed by a substantial downward movement.
Although ADA indicates a short-term correction, there’s still a multi-month upside target at $0.85 that Gambardello believes is achievable, given the ongoing structural formation for this potential move.
Over the last 24 hours, ADA experienced a more than 5% price drop, reaching $0.5551 as per CoinMarketCap. Despite this decrease, the weekly performance showed a strong increase of +35.40%.
Additionally, ADA observed a decline in its 24-hour trading volume, standing at $1,298,135,749, down by 40.39% compared to the previous 24-hour cycle.
