The long-awaited testnet for Cardano’s privacy protocol, Midnight Network, has finally gone live. However, it has failed to reignite interest in the blockchain’s native coin, which continues its downward trend.
This analysis examines the coin’s technical setup, with signals suggesting that if selling pressure intensifies, Cardano’s price could plummet by an additional 21%.
Cardano Holders Ignore Midnight Testnet Launch
According to an October 1 blog post, Cardano’s Midnight sidechain allows developers to build functional applications while maintaining user privacy.
Announced in 2023, Midnight is Cardano’s Layer-1 (L1) privacy-focused solution. The recently launched testnet will focus on testing critical features to ensure a stable environment for developers as they explore the protocol.
Despite this progress, Cardano’s price has not reflected the development. The altcoin is trading at $0.34, marking an 11% drop since October 1. On its one-day chart, Cardano remains in a horizontal channel, repeatedly facing strong selling pressure at the $0.40 resistance level despite attempts to break out.
Read more: How To Buy Cardano (ADA) and Everything You Need To Know
On September 27, ADA made another attempt to break out, but strong resistance from bears triggered a downward trend. The coin’s price is now approaching the channel’s support at $0.31, with indicators suggesting that this level may not hold.
At its current price, ADA risks falling below the Ichimoku Cloud, which it briefly tried to flip into a support floor during its rise between September 24 and 27. However, with declining buying pressure, the cloud may fail to act as support.
The Ichimoku Cloud, a tool used to gauge market trends, momentum, and support/resistance levels, signals a bearish phase when an asset’s price falls below it. In this case, the cloud has shifted to a resistance zone, making it harder for ADA to climb back without a strong resurgence in buying pressure.
ADA Price Prediction: Bulls Must Defend This Support
The growing bearish sentiment in the broader cryptocurrency market casts doubt on any near-term resurgence in ADA’s buying pressure. This negative outlook is reinforced by its Elder-Ray Index reading of -0.04, indicating that bear power currently dominates the market.
If ADA fails to find support from its Ichimoku Cloud, the altcoin will likely approach the lower support line of its horizontal channel. A failure by bulls to defend this level could push Cardano’s price down to $0.27, a 21% drop from its current value.
Read more: Cardano (ADA) Price Prediction 2024/2025/2030
On the other hand, if buying pressure resurfaces, ADA could rise above the cloud and aim for the channel’s $0.40 resistance. A successful breakout here might set the stage for a climb toward $0.60.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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Abiodun Oladokun
https://beincrypto.com/cardano-price-eyes-decline/
2024-10-03 11:30:00
