A popular crypto analyst is warning Cardano holders, saying that ADA is on the verge of collapsing as bearish momentum continues to build up.
In a new strategy session, Jason Pizzino tells his 276,000 YouTube subscribers that ADA’s price may drop into the lower $0.30 range, or even much less, as it breaks one support area after another.
“I don’t think ADA is going to hold out. I don’t think it’s going to be back above $0.60 anytime soon. Back down at $0.36, this is much, much much weaker. Look at that low that came in in May ($0.40). You can see that it’s fallen beneath it, acted as resistance now on the daily chart, and any sort of moves up that happen with Bitcoin (BTC) might be overall less to the upside.
And when Bitcoin falls – has those corrections, it’s going to be a hard hit in ADA because it’s in a far weaker position overall in the macro chart here, and I still think ADA is looking like it’s going to be falling into these teens ($0.17) to lower $0.30 areas.”
As of writing, ADA is trading hands at $0.37.
Pizzino says one chance for ADA to prevent the collapse is if it goes on an abrupt rally this month.
“The only thing that can save ADA from this is if it gets back above all of those previous support levels relatively quickly within October and then back above $0.40 and starts to consolidate above $0.40. Until that happens, ADA is probably in trouble and probably going to head lower.”
Pizzino is also keeping an eye on Ethereum (ETH), which he says is starting to come to life after posting several bullish higher low setups.
“It just needs to get a bit of a kick on relatively soon. It’s good to see that the closes are remaining above $1,280. That’s a good sign to see, and now we want to see it just bounce away when the volume comes back [this] week. Otherwise, that little bit of a low ($1,190) could be in trouble. However, at least we’ve moved away from these particular lows here at a $1,000 and $880.”
As of writing, ETH is trading hands at $1,336.77.
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