Logo
Cardano Ecosystem

Crypto Breaking

10/19/2022

·

362 views


Cardano price chart paints ‘Burj Khalifa’ with 7-month losing streak — More losses ahead?

Cardano (ADA) price is in the process of painting its seventh red monthly candle in a row as the token fell to its lowest level since February 2021. The trend saw ADA’s price rising nearly 800% to $3.16 between...

Cardano price chart paints ‘Burj Khalifa’ with 7-month losing streak — More losses ahead?

Cardano (ADA) price is in the process of painting its seventh red monthly candle in a row as the token fell to its lowest level since February 2021.

The trend saw ADA’s price rising nearly 800% to $3.16 between February 2021 and September 2021, followed by a complete wipeout of those gains entering October 2022. Amusingly, the entire price action took the shape of the “Burj Khalifa,” the world’s tallest skyscraper in Dubai.

Ada Khalifa pic.twitter.com/KE2SxTO3bN

— Trader_J (@Trader_Jibon) October 19, 2022

ADA price eyes 35% price crash

The ADA price correction began primarily in the wake of a similar downtrend across the cryptocurrency market, led by the Federal Reserve’s aggressive interest rate hikes to tame rising inflation.

Even an optimistic Cardano network upgrade dubbed Vasil was not enough to bring its buyers back to the market.

Notably, ADA’s price has dropped by nearly 20% since the Vasil hard fork nearly a month ago — an update aimed at improving its network’s scalability and smart contract capabilities.

Moreover, the ADA/USD pair also broke below a key support level that may lead to another major crash ahead in Q4.

The said support level at around $0.42 constitutes a descending triangle, a continuation pattern. In other words, ADA’s potential to continue its prevailing downtrend becomes higher if it forms and breaks out of a descending triangle to the downside.

ADA/USD three-day price chart featuring descending triangle breakdown. Source: TradingView

Meanwhile, as a rule of technical analysis, a descending triangle breakdown during a downtrend typically pushes the price lower to a level at length equal to the pattern’s maximum height. Therefore, ADA risks dropping toward $0.248, or by 35%, if the descending triangle breakdown plays out.

$ADA now losing the lights out level and going to the place where coins go when they die. Prob got a -50% in it from that breakdown level imo

And I’m by no means picking on it. I posted charts for almost several alts like this including $SOL and $ETH in Dec-Jan pic.twitter.com/Of0TNZfXKK


— Pentoshi (@Pentosh1) October 19, 2022

Conversely, a retest followed by a close above the triangle’s lower trendline as resistance raises ADA’s possibility to invalidate the bearish outlook. In doing so, it could trigger a descending channel setup forming simultaneously with the ascending triangle, as shown below.

ADA/USD three-day price chart featuring descending channel pattern. Source: TradingView

The descending channel setup sees ADA bouncing from its lower trendline to test the upper trendline near $0.45 as its immediate upside target. In other words, a 30% interim price rebound.

Macro risks remain

Overall, Cardano continues to tread ahead under macro risks, primarily after September’s 8.2% inflation reading, which raised the possibility of the Fed continuing its rate hike spree for the remainder of 2022.

Risk assets across the board have witnessed a decline in individual investors’ enthusiasm, which were instrumental in pushing the cryptocurrenc prices higher in 2020 and 2021. For instance, Robinhood Chief Executive Vlad Tenev noted:

“2020 and 2021, people were really interested in investing in stocks. There was widespread participation in the stock market. Now people are talking about gas prices and inflation.”

ADA, whose positive correlation coefficient with the U.S. benchmark S&P 500 has remained above 0.80 for most of 2022, also witnessed a sharp decline in its daily active addresses (DAA) since November 2021’s market top.

Related: Cardano founder points out flaws in Ethereum and Bitcoin

Notably, its 30-day DAA average dropped to 165,000 on Oct. 19, its lowest level in two years, data from Santiment shows.

Cardano 30-day DAA average. Source: Santiment

On a brighter note, the number of Cardano addresses holding 100-1,000 ADA and 1,000-10,000 ADA tokens has increased during the bear cycle, hinting at potential accumulation by large investors, or so-called whales. 

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Source: Cointelegraph.com

AD

SNEKbot by DexHunter on CARDANO

Cardano's Telegram Trading Bot live on Cardano mainnet!TRADE NOW!


Read Original Article on Crypto Breaking

ORIGINAL SOURCE

https://cryptobreaking.com/cardano-price...

Disclaimer: Cardano Feed is a Decentralized News Aggregator that enables journalists, influencers, editors, publishers, websites and community members to share news about the Cardano Ecosystem. User must always do their own research and none of those articles are financial advices. The content is for informational purposes only and does not necessarily reflect our opinion.


Genius Yields DEX Launched!

More from Crypto Breaking

See more
Here’s Why The Cardano Price Is Struggling Below $0.7
Crypto Breaking
Here’s Why The Cardano Price Is Struggling Below $0.7

yesterday at 5:00 PM

·

10 views

Related News

See more
Genius Yields DEX Launched!

Featured News

See more



    DEFAULTENGLISH (EN)SPANISH (ES)RUSSIAN (RU)GERMAN (DE)ITALIAN (IT)POLISH (PL)HUNGARIAN (HU)JAPANESE (JA)THAI (TH)ARABIC (AR)VIETNAMESE (VI)PERSIAN (FA)GREEK (EL)INDONESIAN (ID)ROMANIAN (RO)KOREAN (KO)FRENCH (FR)CZECH (CS)PORTUGUESE (PT)TURKISH (TR)