- 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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin: Retraces to around $75,000 after hitting new all-time high
Bitcoin (BTC) edges slightly down on Thursday and trades at around $74,900 after hitting a new all-time high (ATH) of $76,400 on Wednesday, buoyed by the victory of the crypto-friendly candidate Donald Trump in the US presidential election.
Ethereum price jump spurs most significant ETF inflows in six weeks
After a positive momentum in crypto markets following the outcome of the US presidential election, spot Ether exchange-traded funds (ETFs) in the United States saw their highest inflows in six weeks.
Top trending meme coins PEPE, BONK, and FLOKI achieve double-digit gains following Trump’s victory
The prices of top trending meme coins Pepe (PEPE), Bonk (BONK) and FLOKI (FLOKI) experienced double-digit gains following Trump’s victory on Wednesday. The technical outlook suggests that the three meme coins hover around key levels, and the breakout could push these coins higher.
SUI hits new all-time high fueled by Trump election win
Sui (SUI) edges down on Thursday and trades at around $2.24 after hitting a new all-time high (ATH) of $2.38 earlier in the day, buoyed by the victory of a crypto-friendly candidate, Donald Trump, in the US presidential election.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.