Price Forecast for Cardano: ADA dips as profit-taking triggers selling pressure:

The price of Cardano is trading near $0.85 on Tuesday after correcting more than 7% over the last two days.
On-chain data shows that holders are realizing profits, which contributes to short-term selling pressure.
Technical outlook warns of a deeper correction if ADA closes below the support of $0.82.
Cardano (ADA) price is around $0.85 at the time of writing on Tuesday, after experiencing a decline of more than 7% in the last two days. This correction comes amid ADA holders realizing profits, thus increasing selling pressure. Traders should be cautious as a solid close below key support at $0.82 would trigger a deeper pullback.
Profit-taking by holders triggers a short-term dip.
The Santiment Network Profit/Loss Metric (NPL) indicates that Cardano holders are recording some profits.
As shown in the chart below, NPL experienced a significant spike on Monday, reaching its highest level since the end of July. This spike indicates that holders, on average, are selling their assets at a significant profit and increasing selling pressure.
In addition to this increased profit-taking activity, the Coinglass long-to-short ratio was at 0.87 on Tuesday, the lowest level in over a month. A ratio below one indicates bearish sentiment in the market, as traders bet that the price of ADA will decline.
Cardano Price Prediction: ADA is at risk of experiencing a deeper correction if it closes below key support.
The price of Cardano broke above the daily support level at $0.84 on September 8 and increased by 9% over the next five days. However, it failed to maintain the upward momentum on Sunday and fell by 7.66% on Monday. At the time of writing on Tuesday, it was around $0.85.
If ADA continues to experience a pullback and closes below the 38.2% Fibonacci retracement level at $0.87, it could extend the decline towards the next support level at $0.8375.
Relative Strength Index (RSI) reads 49, sliding below its neutral level of 50, indicating early signs of bearish momentum. The Moving Average Convergence Divergence (MACD) is also converging towards a bearish crossover. A successful bearish crossover on a daily basis will further support the bearish outlook and indicate a downward trend ahead.
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