‘Falling Knife’: Gemini and ChatGPT Predict Shocking Lows for Cardano’s ADA

Cardano’s native token is as soon as once more below heavy strain, alongside a lot of the market. However, whereas BTC and most different alts crashed to their lowest ranges for the reason that US presidential elections in late 2024, ADA went even additional, dropping to $0.222 (on Bitstamp and different exchanges) for the primary time since June 2023.

Despite recovering barely to $0.27, the token remains to be 34% down month-to-month. Moreover, it has plunged by 80% since its cycle prime at $1.33 marked in late 2024. Consequently, we requested ChatGPT and Gemini whether or not the worst is behind ADA or if there’s extra ache across the nook.

ChatGPT Says…

ChatGPT started with some harsh phrases for Cardano buyers, suggesting that the decline to the $0.22 space is “not simply one other routine dip.” Instead, it believes it represents a “structural breakdown of long-term help, confirming that sellers stay firmly in management.” This was confirmed after the asset plunged beneath key help ranges at $0.40, $0.30, and even $0.25 (which was later reclaimed, although).

What might spell additional hassle for ADA trying forward is that these consecutive worth drops recommend that “the buy-the-dip demand has steadily weakened” recently. As such, all eyes have now turned to the $0.20 help, which has turn into the “line within the sand.”

If ADA is to fall beneath that psychological degree, probably the most real looking goal through the ongoing bear part can be a dip to $0.15-$0.16. However, ChatGPT outlined a extra excessive capitulation situation, by which the token plummets to $0.10-$0.12.

“While this may occasionally sound surprising, large-cap altcoins have traditionally misplaced 80-90% from cycle highs throughout extreme downturns. ADA is just not resistant to that sample,” it concluded.

Gemini’s Take

Dumping beneath $0.30 meant that ADA’s each day chart has become a “falling knife,” mentioned Gemini. This breakdown beneath the multi-year help was the “ultimate nail within the coffin for many long-term holders.” On its means down, the asset dumped beneath its 200-day MA (at round $0.45), and it obliterated tens of millions in leveraged longs. Gemini’s “nightmare” situation envisions a drop to even beneath $0.10 if sure components align in an hostile method:

“If Bitcoin capitulates to $55K within the coming weeks, ADA dangers dropping its standing as a “main” altcoin. A breakdown beneath $0.15 opens a liquidity vacuum all the best way right down to $0.09. While this sounds unimaginable, do not forget that “unimaginable” issues occur repeatedly in crypto winters,” it warned.

The submit ‘Falling Knife’: Gemini and ChatGPT Predict Shocking Lows for Cardano’s ADA appeared first on CryptoPotato.