According to value investor and asset manager Mike Alfred, Cardano (ADA)’s ‘surreal’ price drop will end in 3-9 months. Meanwhile, the altcoin is currently extremely undervalued, according to analytics platform Santiment.
‘This phase for Cardano will end in 3-9 months’
Mike Alfred responded to a tweet about the market from the nickname ‘ADA Whale’. Alfred shared his view on when the massive price drop of Cardano (ADA) and other cryptocurrencies in the market will likely stop.
ADA Whale said that the price action of crypto in the current bear market is surreal. He argued that “inorganic and despicable activities by certain exchanges” played an important role here. This statement clearly marks the collapse of FTX in early November. He also added that the crypto space is not well regulated enough.
This is where Mike Alfred stepped in. He specifically stated that we are now approaching the targets set by the ADA 18-24 months ago. However, these predictions seemed highly unlikely at the time. Overall, Alfred predicts that this downward phase will end in 3 to 9 months.
Meanwhile, since Friday, Dec. 16, ADA has seen a staggering 16% loss. The altcoin is currently trading at $0.25.
“This altcoin is doubtfully outperforming!”
In another tweet he shared today, Mike Alfred stated that Binance Coin (BNB) is again ‘suspiciously outperforming’ the crypto market today. He said this is despite the growing amount of ‘evidence of fraud and market manipulation’ associated with this major cryptocurrency exchange. According to Alfred, Binance and its affiliated market makers use users’ deposits to support the price of BNB.
Earlier today, BNB was up nearly 2%. However, at the time of this writing, he has lost almost all of those gains. Over the weekend, BNB rose a staggering 11.75% to $252 after dropping to $225. At press time, the altcoin is changing hands at $243.7.
According to Santiment, this altcoin is extremely undervalued!
Cardano is in a complicated situation in the cryptocurrency market. The asset failed to find any support from institutional investors in 2021. Furthermore, it failed to achieve any redemption in 2022. Two years of active selling has made Cardano extremely undervalued compared to Ethereum, Solana and other competitors. But does this mean that the ADA will meet in 2023?
According to analytics platform Santiment, there are some signs that sellers are starting to run out. With every downside move in ADA, there are fewer coins on the network that are losing money. Hence, this also indicates a constantly decreasing sales force in the network.
Additionally, there is a bearish trend in trading volume, which is one of the strongest fade/reversal signals observed in the market. As a trend passes, the bulls or bears gradually lose their strength, gradually giving away the momentum. At this point, a trend reversal takes place. This is likely true for Cardano, especially if there is a general recovery in the crypto market in 2023. However, the entire analysis is based on only a few indicators that do not give us any fundamental insights that would allow us to confidently predict the movement of ADA in 2023.
How will things go now?
Crypto analyst Arman Shirinyan conveys what he saw in the ADA’s technical drawing as follows. Sadly, Cardano fell to the local low once again. It’s also not ready to take a leap, as it has failed to gain momentum after showing a 7% price increase in the last four days. The trading volume of the asset is indeed declining. But that’s probably also due to the holidays in financial markets around the world. So it’s hard to tell us that the trend has changed. The trend will most likely continue until January 5th.