Cardano (ADA) could sink into the $0.12 range amid four technical bearish signals, a forecast showed.

On Oct. 26, blockchain media outlet Decrypt reported that cryptocurrency trader Crypto Ties said selling remained dominant in ADA's recent moves and set the next downside target at $0.1204.

Cardano rose to $0.28 early this month, lifting expectations of a rebound, but has since fallen 25.7% from that peak. ADA was at $0.2080 when Crypto Ties presented the analysis. That is below the 200-day exponential moving average of $0.2385.

The first signal cited was the possibility of a Phase C in a Wyckoff distribution pattern. Crypto Ties interpreted that zone as a shift in holdings by large market participants. He added that chart patterns alone do not confirm whether large investors are selling.

The second signal was that ADA is trading below the 200-day exponential moving average. The indicator is widely used to gauge long-term trends. As long as ADA remains below it, it is read as weak momentum in the broader trend. He judged that ADA must first reclaim that level to confirm a rebound signal.

The third signal was a structure of lower highs and lower lows on the daily chart. ADA has been making lower lows without regaining the prior high around $0.28. Crypto Ties said the pattern shows sellers have continued to hold the upper hand in recent price action.

The fourth signal was trading volume. He noted that over the past 20 days, volume on down days was 2.2 times higher than volume on up days. That implies stronger participation when prices fall than when they rise. If that imbalance persists, it could further strengthen the bearish scenario.

Crypto Ties also mentioned a possible counterargument. He said ADA is testing an upward trend line that has had four price touchpoints. If buying defends the trend line, it could act as support and break the current downward move.

Still, he said the overall bearish view remains as long as ADA stays below $0.2452. If selling pressure persists without reclaiming that level, the risk of further declines increases, he said. His $0.1204 target is 42.1% below $0.2080.

That price coincides with where Cardano traded in November 2020. Even during this year's major correction, ADA rebounded after dropping to $0.1384 in June, making $0.1204 a scenario below the previous low.

Other bearish forecasts are also circulating. Analyst Kevin Mercer said, based on a zigzag price pattern, ADA could first slide to $0.15 and then rebound to $0.27. Stake pool operator Ssebi also mentioned the possibility of a recovery after this week's pullback.

Uncertainty over short-term price direction remains high. The potential for a rebound remains because it depends on whether support holds. The market's main focus is whether ADA can hold the upward trend line and reclaim $0.2452 and the 200-day exponential moving average.