‘Falling Knife’: Gemini and ChatGPT predict shocking lows for Cardano’s ADA

Has the ADA finally bottomed out after falling below $0.23, or is more pain ahead?

Despite a slight recovery to $0.27, the token is still down 34% month-on-month. Furthermore, the price has fallen 80% since the cycle top of $1.33 at the end of 2024. That’s why we asked ChatGPT and Gemini if ​​the worst is behind ADA or if more pain is on the way.

ChatGPT says…

ChatGPT started off with some harsh words for Cardano investors, suggesting that the drop to the $0.22 area is “not just a routine dip.” Instead, it believes it means a “structural collapse in long-term support, confirming that sellers remain firmly in control.” This was proven after the asset fell below the key support levels of $0.40, $0.30 and even $0.25 (which, however, was later recovered).

What could pose further problems for ADA going forward is that these successive price drops suggest that “buy-the-dip demand has been steadily weakening recently.” As such, all eyes are now on the $0.20 support, which has become the ‘line in the sand’.

If the ADA were to fall below that psychological level, the most realistic target during the ongoing bear phase would be a dip to $0.15-$0.16. However, ChatGPT outlined a more extreme capitulation scenario, in which the token plummets to $0.10-$0.12.

“While this may sound shocking, large-cap altcoins have historically lost 80-90% from cycle highs during severe recessions. ADA is not immune to that pattern,” the report concluded.

Gemini’s Take

Dumping below $0.30 meant that ADA’s daily chart has turned into a “falling knife,” according to Gemini. This breakdown among multi-year support was the “final nail in the coffin for many long-term owners.” On its way down, the asset fell below its 200-day MA (about $0.45), wiping out millions of leveraged longs. Gemini’s “nightmare” scenario foresees a drop even below $0.10 if certain factors play out unfavorably:

“If Bitcoin capitulates at $55,000 in the coming weeks, ADA risks losing its status as a ‘major’ altcoin. A breakdown below $0.15 opens a liquidity vacuum to $0.09. While this sounds impossible, remember that ‘impossible’ things happen regularly in crypto winters,” it warned.