- 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