Cardano (ADA) Price To Plunge More Than 30% – New Lows Ahead
Cardano’s price action reveals a dearth of buyers, which has caused it to fall below a crucial support level and cause a bearish market structure break. Prices for ADA have been falling lately as it failed to advance further after peaking at $0.595 on August 14 and has since dropped back to trading below a bearish trendline.
Although the minutes from the FOMC meeting on Wednesday suggested a recovery to $0.381, on Thursday the prices again went back to the $0.36 level. The defeat on Thursday was the seventh in eight trading sessions.
To reach the first major resistance level at $0.392, ADA must move past the pivot point at $0.384. Positive news today would also aid in making up for the initial losses. But the US CPI report from today might be pivotal and ADA would probably challenge the second important resistance level at $0.403 in the event of a breakout session.
More pain ahead for ADA?
Peter Brandt, a seasoned trader, believes that the price of ADA will continue to decline below the $0.25 mark based on a traditional descending triangle pattern. The seasoned trader identified a “descending triangle” chart pattern, which is a negative indication that typically develops as a continuation pattern during a slump.
The price of ADA is at a crucial crossroads since a further 28% decline from current levels could materialize Brandt’s negative forecast of sub-$0.25. In the meantime, the daily RSI has descended below the 30 oversold levels, suggesting that ADA may have a relief rally soon, or at the very least a dead cat bounce.
This sell off is brutal, one of those days (which we also saw in the last bear market) where $ADA specifically seems to get singled out by the market, presumably mostly leverage monkeys. It is what it is, have been throwing the occasional Bitcoin into the ADA/BTC snake pit today— ADA whale (@cardano_whale) October 13, 2022
In response to the market sell-off, Cardano’s community-focused Twitter account, ADAwhale, asserts that the fundamentals are stronger than ever, “This sell-off is brutal, one of those days (which we also saw in the last bear market) where ADA specifically seems to get singled out by the market, presumably mostly leverage monkeys.”Source