Cardano (ADA) price forecast for December 27
ADA, which is native to the Cardano blockchain, appears to be struggling to maintain its critical support level amid market uncertainty. Today, December 27, 2024, the overall cryptocurrency market sentiment seems to be bearish, including major assets such as Bitcoin (BTC), Ethereum (ETH) and XRP.
This decline in prices in prime assets has completely turned the market sentiment into a bearish trend.
Cardano (ADA) current momentum
At press time, ADA is trading near $0.864, having gained more than 6.9% in price over the past 24 hours. Amidst this price drop, the altcoin has reached a critical point. If this level fails to hold, the asset could accumulate 15%, below the $0.75 mark.
This price action created panic among traders and investors, reducing trading volume. According to CoinMarketCap, ADA's trading volume has decreased by 16% in the last 24 hours.
Cardano (ADA) technical analysis and upcoming level
According to expert technical analysis, ADA has recently broken out of a bearish head and shoulders price action pattern. Over the past seven days, the pattern has been consolidating below the neckline. Amid the recent decline, ADA price has reached the lower boundary of the consolidation zone and is about to break.
Based on the recent price action, if the altcoin breaks this level and closes the daily candle below the lower limit of the zone, there is a strong possibility that it will decrease by 15%, reaching the $0.77 mark in the future.
ADA's bearish thesis holds true only if a daily candle closes below $0.85, which is the lower bound of the consolidation zone. Otherwise, the beat condition cannot be realized.
Metrics on the chain show mixed feelings
Despite this pessimistic outlook, long-term holders appear to be optimistic, while traders seem hesitant to establish new positions, according to chain analysis firm Coinlas. Data from the ADA spot inflow/outflow shows that exchanges have issued a significant amount of ADA worth $4.7 million, indicating that there is an accumulation and buying pressure.
Conversely, traders appear to be reducing their positions, as evidenced by a 8.2% decrease in ADA open interest over the past 24 hours.
