thecryptobasic.com 01 October 2024 13:00, UTC

A widely followed crypto trader warns of a potential 61% crash for Cardano (ADA) to $0.15, urging investors to consider shorting despite recent gains.

Cardano reclaimed the $0.40 region a few days ago amid the broader bull run in the crypto market. ADA benefited from the buoyant market, hitting $0.4147, a price point it last traded at in July, marking a two-month high.

However, despite Cardano’s impressive price action at the end of September, some market analysts continue to urge participants to short ADA. They warn that the bulls have not returned yet.

Analyst Looking for 61% Crash in Cardano

For instance, market watcher RayTrader on TradingView recently updated his analysis of ADA, emphasizing a bearish outlook for the coin. He recognized Cardano’s successful entry into the $0.40 range on September 26. However, RayTrader disclosed that he still expects a consequential price drop, forecasting a decline to between $0.16 and $0.15 before a potential shift to a bull market.

For context, ADA is trading at $0.3846 at the time of reporting. Crashing to $0.15 would represent a substantial capital loss of approximately 61% for today’s investors. Cardano last traded in this range in December 2020 before rallying to an all-time high of $3.10 in September 2021.

This means that, even after ADA declined significantly during the bear market of 2022 and 2023, its price did not reach the $0.15 level. Yet, despite the present broader bull market sentiment, RayTrader firmly believes a crash in this region is possible.

“Good Sign” to Continue Shorting ADA

RayTrader updated his initial bearish outlook shortly, stating that Cardano’s recent fall below the $0.40 level was a “good sign” to short the coin. He outlined a more immediate short target of $0.25.

Following the broader market downturn on Monday, when ADA slipped to $0.3718, RayTrader reiterated that this development is another good sign for short sellers to hold their positions, noting that there is a long way to go before reaching the $0.15 level.

The bearish analyst suggested that those satisfied with accrued profits from shorting ADA may choose to liquidate their positions along the way, but he believes more profit could be made with patience until the $0.15 target is hit. He argues that reaching this level would signal the bottom from which a significant bull run could commence for Cardano.

While RayTrader remains significantly bearish on ADA, other market analysts hold a bullish outlook. Citing historical patterns, they project that the coin could reach as high as $10 in this bull season.