- Cardano price is under pressure from a bearish triangle.
- ADA traders send price action lower as Silvergate bank stops crypto services.
- With headwinds mounting, short-term sentiment favors the downside.
Cardano (ADA) price is under pressure as the crypto community sees one of the biggest and leading payment services in the sector back out. The Silvergate Capital situation looks to be the next big failure after the FTX meltdown and Terra’s LUNA collapse. Bullish sentiment faces harsh headwinds and looks set to snap lower, completing the bearish triangle in its path.
Cardano bulls are getting slaughtered over the Silvergate pullback
Cardano price already dropped nearly 6% on Friday in the European session when initial reports came out about Silvergate backing out of the crypto business. Silvergate was a second-tier retail bank that pioneered a commercial gateway for money transactions between cryptocurrencies and hard cash. Silvergate backing out now is almost comparable to when Russia got cut off from the SWIFT network and could mean funding issues are ahead for much-battered crypto participants.
ADA though has traded recently to break out of the bearish triangle and got met with some sharp rejections. Expect another existential crisis with the current headwinds at hand for altcoins with first a drop lower toward $0.32. Once the level breaks under pressure from the bearish triangle completion, a 10% leg lower looks granted with $0.30 at hand.
Where there is a door closed, another one could open and a new service provider could replace Silvergate. Several big banks have already created a trading desk for cryptocurrencies, and it would only be a little step for them to take on the business and provide the services Silvergate did in the past. That would create some calm water in the altcoin space and see ADA quickly breaking out of the red descending trendline with a revaluation near $0.37.
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