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
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.