- Cardano price hovers near key support as optimistic crowd flips bearish.
- Sentiment is at its lowest in five months, but ADA price is holding up.
- The downswing could allow whales to come in and catalyse fresh gains.
Cardano (ADA) price has failed to break above the notable resistance level around $0.84 as analysts point to a shift in retail trader sentiment.
After surging alongside top altcoins to highs of $1.23 in December 2024, Cardano has found it hard to regain momentum, with short retail sentiment allowing bears to push ADA below $1 and to the $0.80 support level.
But what does a shift in sentiment mean for Cardano price?
ADA dips to key support amid retail sentiment slip
Cardano remains among the top 10 coins by market cap, but is currently down more than 6% in the past week amid a significant change in retail trader sentiment.
ADA enjoyed a bullish commentary ratio in August as the price rose to above $1, with this coming on the back of a sharp pullback earlier in the month.
Per analysts at on-chain metrics platform Santiment, the retail outlook has again swung bearish, with a bullish-to-bearish commentary ratio of 1.5:1, the most negative the crowd sentiment has been in five months.
Santiment’s data, which highlights social media activity and comments, suggests gains follow such dips in retail sentiment.
Notably, this bearish sentiment has been a catalyst for a 5% price rebound thus far, with ADA price eying a fresh breakout.
“Cardano has quietly seen its normally optimistic crowd start to turn bearish. After the lowest sentiment recorded in 5 months, $ADA’s price is +5%. Patient holders and dip buyers during this three-week downswing should root for this trend of bearish retailers to continue,” Santiment posted on X.
Bulls are thus trying to keep the $0.80 support level intact.
Cardano price prediction
The flip in retail sentiment has sparked optimism among analysts regarding Cardano’s price trajectory.
According to Santiment, hodlers and dip buyers may want to position further ahead of a potential price rally.
Historically, bearish retail sentiment has offered an ideal accumulation phase for whales, in this case, the outlook that could potentially drive ADA’s price upward.
“Prices typically move the opposite direction of the crowd’s expectations. When small traders sell off their bags out of impatience and frustration, it is generally the key stakeholders who accumulate and drive up prices again,” the analysts noted.
However, while short-term volatility is expected, Cardano may yet experience an extended pullback.
Broader market conditions and whale activity will provide signals, while traders may have to look at the technical picture.
As the market is largely weak amid September woes, ADA price could revisit support around $0.69 and $0.54.
On the upside, a breakout above $0.84 will allow buyers to aim for the psychological $1 level and $1.24. The all-time high is at $3.10.
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