Cardano Price Prediction: Why ADA Could Drop to $0.84

Highlights:

• Cardano has breached support and is trending towards $0.84 support
• Correction triggered by selloff across the financial markets
• Negative sentiment around Bitcoin short term could accelerate ADA selloff

Cardano (ADA), like the rest of the market, is dumping today. This correlates with the CME futures that opened the week with a significant price dump. Cardano was down by 10.2% when going to press to stand at $0.88.

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However, Cardano’s trading volumes have shot up in the day, up by 111.77% to stand at $1.05 billion. This indicates that many people are active in the market, potentially liquidating their positions in anticipation of a much bigger selloff in the day. Such expectations are pretty much in line with the heightened fears across the financial markets today.

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The result is a selloff and an expectation of even more selloffs once the US markets open for the week. Because cryptocurrencies are increasingly correlated to the stock markets, investors are selling off Cardano in expectation of even bigger selloffs.

Bitcoin Weakness Post-Trump Inauguration Accelerating Cardano Selloff

The selloff is also accelerated by the fact that Bitcoin has been showing weakness since President Trump’s inauguration. Buyers have been unable to push the price much despite the heavy expectations around the Trump presidency. This, at a time when there is a lot of liquidity, around $90k to $85k, creates a perfect setup for a potential big drop for Bitcoin. Given that Cardano tends to follow in Bitcoin’s price action, the odds are high that Cardano could be headed for more selloffs.

A Bitcoin drop to lows of $90k or lower could see Cardano drop to prices as low as $0.50 in the short term. Big industry players have also noted the potential selloff. According to Arthur Hayes, the founder of Bitmex derivatives exchange, Bitcoin could be headed to prices as low as $85k. Such sentiments by big industry players could accelerate the selloff and could see Cardano and other altcoins drop further.

Meme Coins Stealing the Limelight From Top Altcoins Like Cardano

Cardano’s correction in the day is also accelerated because the meme coins have recently drained liquidity from the bigger, more fundamentally strong altcoins. This adds to Cardano’s short-term price weakness.

The competition for liquidity from meme coins is made worse by the fact that Cardano faces a lot of competition in the L1 space. With most of the new projects hitting the market based on Solana, Cardano might struggle, especially now that the broader market is showing weakness.

Technical Analysis – ADA In A Selloff After Support Gives Way

From the charts, Cardano is in a cliff selloff mirroring the selloff across the financial markets. It has already breached the $0.975 support intra-day and is pushing lower. If the current selloff continues, Cardano could be headed for the multi-week support at $0.840.

However, if the price rebounded during the day, Cardano could retest $0.957, which is now an intra-day resistance level. Of these scenarios, a drop to $0.840 seems more likely as the financial markets remain strongly bearish.

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