It was a sea of green in the cryptocurrency industry as Bitcoin rose for two consecutive days, and the fear and greed index exited the fear zone. 

Moo Deng, Neiro, SPX6900 led the crypto comeback

Meme coins were some of the best-performing assets. Moo Deng (MOODENG), the new hippo-themed token, doubled, with its market cap rising to over $35 million. 

Neiro (NEIRO), another popular meme coin, jumped by 51.6% and reached an all-time high of $0.0015. Its market cap rose to over $621 million, making it more valuable than many well-known U.S. public companies like Beyond Meat, GoPro, and Spirit Airlines.

The SPX6900 (SPX), which aims to be a better version of the S&P 500 index, rose by 46%, continuing the gains made last week. It has increased by over 46% in the last 24 hours, giving it a market cap of over $373 million.

This price action happened as investors embraced a risk-on sentiment after last week’s strong US nonfarm payrolls data and as China unveiled more stimulus. As a result, global stocks also bounced back, with Japan’s Nikkei 225 and Hong Kong’s Hang Seng rising by over 2%. 

Crypto fear and greed index rises

Meanwhile, the crypto fear and greed index exited the fear region, rising to a weekly high of 42. In most cases, cryptocurrencies perform well when investors are no longer fearful.

The rebound also followed some positive news in the crypto industry. Metaplanet, a Japanese company, has continued to accumulate accumulate Bitcoins (BTC) as it seeks to replicate MicroStrategy’s success. MicroStrategy, which has accumulated over 252,000 coins worth $15.8 billion, has a market cap of over $33 billion, giving it a high premium.

Additional data showed that the number of Bitcoin addresses holding over $1 million in Bitcoin has continued to rise. This is a sign of significant demand for the coin despite its recent performance.

Donald Trump is also a factor in the ongoing comeback after he held a campaign rally with Elon Musk. Polymarket data shows that he has increased his lead against Kamala Harris, currently modeling a 51% chance of winning the upcoming presidential election. 

Trump is seen as a better candidate for the crypto industry because he has vowed to appoint crypto-friendly officials. He is also a key participant in the industry through his World Liberty Financial project. Data from Arkham shows that he holds cryptocurrencies worth over $6.5 million.

The Cardano price bounced 4% in the last 24 hours, igniting hope among investors. However, an avid critic of ADA, Max Keiser, suggested that a 90% crash is likely for Cardano price. While this prediction from the expert might seem drastic, there’s a caveat. Let’s explore what’s next for the so-called Ethereum-killer. 

Expert Keiser Predicts 90% Crash for Cardano Price

A recent tweet by Bitcoin Maxi Max Keiser said the ADA price will lose another 90% compared to Bitcoin in the next six months. 

Cardano (ADA) will lose another 90% vs. Bitcoin over the next 6 months. pic.twitter.com/jQHhJg1m59

— Max Keiser (@maxkeiser) October 5, 2024

However, if ADA/USDT were to drop 90% from its current price, it would be trading at $0.03, and its market cap would shrink to $1 billion. This is unlikely, given Cardano’s recent network developments and the overall bullish sentiment in the crypto market following Elon Musk’s support at Donald Trump’s rally.

The Cardano community responded to Keiser’s post, citing that if the ADA price drops 90%, it would present a great entry position.

Cardano whale activity increased over the last 48 hours, but according to IntoTheBlock (ITB) data, the volume increased in the wrong direction. The total large transaction count increased from 311 to 337 between October 5 and 6, but the whale netflow dropped from 27,000 ADA to -3.11 million ADA ($1.1 million). This suggests that whales may be offloading their ADA.

Additionally, a look at the Coinglass Liquidation map shows that derivative traders are overwhelmingly bearish on Cardano price in the daily, weekly, and monthly timeframes as the cumulative Short Liquidation Leverage is higher than the Longs equivalent.

These imbalances suggest that the dominant sentiment in the market is bearish, as traders anticipate the Cardano price will drop lower in the future. 

With these metrics and statistics, Keiser’s prediction looks more likely to happen than not. Unless market conditions change, the ADA price may continue dropping for the foreseeable future.

ADA Price Analysis: What Next for Cardano?

Cardano price is trading in a range-bound condition, with a resistance zone near $0.37 and support levels at $0.32. 

There is resistance at $0.37 and then a more significant level around $0.40, which has been tested previously. Conversely, $0.32 marks a key demand zone where the price bounced off in the past, acting as a solid floor.

The red resistance zone acts as a supply zone, where selling pressure may intensify. Bearish pressure is indicated by the downward arrow, suggesting potential retesting of lower levels like $0.32.

A rejection from the current levels would lead the price to test the $0.32 support zone. Failure to hold $0.32 could lead to a more significant bearish movement, targeting levels below $0.27. 

That said, for Keiser’s prediction to come true, there would need to be a black swan event or the Bitcoin price to go parabolic in the next 6 months.

If the ADA price breaks and sustains above $0.37, expect a potential move toward $0.40, which is the next resistance. A confirmed close above $0.40 would shift momentum to a more bullish outlook, pushing the price 29% to $0.50.

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Evans Karanja

Evans Karanja is a crypto analyst and journalist with a deep focus on blockchain technology, cryptocurrency, and the video gaming industry. His extensive experience includes collaborating with various startups to deliver insightful and high-quality analyses that resonate with their target audiences. As an avid crypto trader and investor, Evans is passionate about the transformative potential of blockchain across diverse sectors. Outside of his professional pursuits, he enjoys playing video games and exploring scenic waterfalls.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.