In recent weeks, the price of Cardano (ADA) has experienced significant downward pressure, underperforming compared to other major cryptocurrencies. ADA has experienced a fresh decline, dropping below the $0.3550 threshold, with a notable 15% decrease over the past 30 days. This challenging performance has left many ADA holders in a precarious situation, facing unrealized losses as the cryptocurrency struggles to regain its footing.
Understanding the Current ADA Price Correction
The ongoing ADA price correction has proven particularly challenging for long-term investors who have remained steadfast despite the asset’s underwhelming performance. According to a TradingView analyst, the optimal strategy for these investors is to continue holding their positions. The analyst suggests that the correction is largely complete, estimating that 80% to 90% of the downturn has already transpired.
Cardano’s Market Position Compared to Peers
Presently, Cardano trades approximately 56% below its 2024 peak of $0.7742. This is in stark contrast to the broader market, where cryptocurrencies such as Bitcoin, Solana, and BNB are nearing their 2024 highs achieved in the first quarter. Despite market rallies in September and October, ADA has shown limited upward momentum, consolidating around levels observed in November 2023.
Potential Future Movements for Cardano
While there is potential for Cardano’s price to decline further, particularly if Bitcoin undergoes a significant correction, analyst Alan Santana posits that Cardano has nearly completed its correction phase. Therefore, any additional drop in ADA’s price is expected to be mild and short-lived, potentially lasting only a few days or weeks.
Long-Term Growth Prospects for ADA
Santana advises against selling ADA at its current low levels, especially for those who have weathered the correction. These price levels are deemed an accumulation zone, suggesting that long-term investors should focus on the upcoming bull market. A strategic approach would be to hold onto ADA until the market fully recovers.
Projecting ADA’s Price Recovery
Santana’s projections indicate that while ADA may experience a slight dip, a gradual recovery is anticipated from November 2024 to February 2025. A more pronounced bullish phase is expected to commence by March 2025, with potential for ADA to rise above $0.70, marking a 130% increase from its current trading price. As of now, ADA is priced at $0.3371, reflecting a modest 1.25% increase over the past 24 hours.
