Despite ADA excellent performance at the close of September, some market analysts remain skeptical and advise participants to short ADA. According to them, the bull momentum has not entirely re-established itself in the market.

Market analyst RayTrader has updated his bearish prediction for Cardano on TradingView. He acknowledged ADA’s movement into the range of $0.40 on September 26 but still predicted it would drop as low as $0.16 and $0.15 before a possible trend reversal into a bull market.

The current Cardano price is $0.35, and a slip back to this level would represent a 61% loss for investors today. While ADA has not been at this level since December 2020, it can still happen, says RayTrader. A crash to this range amidst the present uptrend sentiment.

RayTrader updated his bearish outlook to suggest that ADA slip below the $0.40 level created an excellent opportunity to sell the coin short, establishing a near-term target of $0.25. Having seen ADA slip to $0.3718 with Monday’s broader market downturn, RayTrader maintained, “Short sellers can keep their positions open, as there is still much downside potential before the likely local bottom at $0.15.

This bearish analyst insinuated that traders who are satisfied with profits from shorting ADA might want to liquidate some positions along the way but he feels that the much more significant profits will come to those who remain patient as the $0.15 target is reached. As such, he thinks this level will likely mark the bottom and probably lay the foundation for a big bull run.

Bearish Price Action, Bullish On-Chain Growth

RayTraderhe remains significantly bearish on ADA, but other market analysts hold a bullish outlook.

While the price action of Cardano has been somewhat uninteresting, according to crypto expert @CryptoFaibik, its network isn’t. Celebrating seven years since the mainnet was turned on with zero hours of downtime, continuous developments in the chain ensure that its growth is stable and progressive.

ADA weekly development report of last week shows a 4.24% increase in the number of projects building on the blockchain, at 1,376, pointing to high developer activity. The number of native tokens on the network also increased by 9.7% to stand at 10.40 million, with token policies surging 78.8% to hit 168,811.

The token also attracts fresh interest, which can influence ADA’s price, with the highly expected Midnight Protocol testnet. The latest announcement reported that for developers, the Midnight Protocol is now live, meaning the important milestone for the platform has finally been reached.

It also pointed out that the number of smart contracts being deployed keeps increasing, with 88,340 active Plutus scripts-a number considerably higher. Transaction volume reached 96.94 million from 82.7 million the previous month, which signifies increased adoption of the Cardano ecosystem.

Bitcoin price slips today, after the latest US PMI data by the S&P Global shows that the US economy contracted last month. According to the data, the US manufacturing PMI came in at around 47, slightly down from the previous month’s figure. Notably, BTC was already noting volatile trading as traders appear to be waiting on the sideline ahead of the major economic releases this week.

US PMI Shows A Contracting US Economy

The latest US Purchasing Managers’ Index (PMI) data by S&P Global, which monitors both the manufacturing and services sector, came in at 47.3 in September, down from the previous month’s figure of 47.9. Notably, a reading below 50 indicates a shrinking economy while any reading above 50 indicates a expansion in the private sector.

Notably, this marks the sharpest fall in new orders since June 2023. The data also showed that the US manufacturing segment moved deeper into the contraction area at the end of the third quarter of 2024.

Meanwhile, this contracting data also appears to have weighed on the traders’ sentiment, as evidenced by the recent decline in Bitcoin and the other top altcoins. Almost all the altcoins in the top segment, as per market cap, have noted a decline following the data.

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Rupam Roy

Rupam is a seasoned professional with three years of experience in the financial market, where he has developed a reputation as a meticulous research analyst and insightful journalist. He thrives on exploring the dynamic nuances of the financial landscape. Currently serving as a sub-editor at Coingape, Rupam’s expertise extends beyond conventional boundaries. His role involves breaking stories, analyzing AI-related developments, providing real-time updates on the crypto market, and presenting insightful economic news.
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