Cardano Price Prediction: ADA and the self-fulfilling $0.25 price level
- The Cardano price is in a free-fall fashion with an uptick in volume.
- 120 million ADA tokens, dormant for over one year, have recently resurfaced on the market.
- Invalidation of the bearish thesis is a breach above $0.37.
Cardano price shows potential for a continuous free-fall. The technicals suggest a powerful move underway. The bulls may want to remain sidelined until market conditions turn favorable.
Cardano price falls sharply
Cardano price is experiencing a penny-from-Eiffel-style decline during the third trading week of October. Since the week began, the smart contract token has lost 10% of its market value. Currently, the technicals do not suggest the bears are satisfied just yet.
Cardano's price currently auctions at $0.3419. The move south was catalyzed by a pennant-like pattern mentioned in the previous outlook. The Relative Strength Index has now breached oversold territory after displaying bearish divergences several times throughout the week.
ADA/USDT 4-Hour Chart
Santiment’s 365-Day Circulation indicator compounds the idea of a strong bear rally underway. According to the indicator, an influx of 120 million dormant tokens has recently re-entered the market. The sudden influx of tokens is likely contributing to the overall supply and demand metrics for the ADA price amongst exchanges and institutional investors.
Santiment’s 365-Day Circulation, Price, and Volume Indicators
If market conditions persist, the bears will breach the $0.30 level. If the $0.30 level does not hold, then a $0.25 price for ADA will be imminent. Invalidation of the bearish theiss is a breach above the Pennant's swing high at $0.37. If the invalidation level is breached, the bulls could recover some losses. A likely countertrend target is the 21-day simple moving average at $0.40, resulting in an 18% increase from the current Cardano price.
In the following video, our analysts deep dive into the price action of Cardano, analyzing key levels of interest in the market. -FXStreet Team
Author
Tony M.
FXStreet Contributor
Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.
