Will Cardano Slide To $0.20? What Awaits ADA Investors This Week

Christian Encila

2 years ago

3 mins read

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Cardano (ADA) investors are currently grappling with a critical juncture as the cryptocurrency struggles to maintain its positive momentum within a triangle pattern.

Priced at $0.246925 according to CoinGecko, the ADA market is currently navigating through a complex landscape of potential pitfalls and prospects.

Despite a 1.3% decline in the last 24 hours and a measly 0.1% dip over the past week, the market sentiment remains cautious, with traders closely monitoring the possibility of a downturn to $0.20.

At the heart of the current ADA price conundrum lies the intricate triangle pattern, a technical formation that often signifies a period of market indecision and potential trend reversal.

Within this pattern, the coin’s price movements are constrained between a converging support trendline and a resistance trendline.

The ongoing struggle to sustain a positive cycle hints at a potential bullish breakout. However, the looming threat of a significant plunge to $0.20 keeps many traders at the edge of their seats, anxiously observing the market dynamics.

Benjamin Cowen’s Stark Warning

Adding to the air of caution, renowned crypto analyst Benjamin Cowen has sounded an alarm for ADA investors, issuing a grave warning regarding the cryptocurrency’s trajectory.

In a recent tweet, Cowen highlighted ADA’s declining value in terms of Bitcoin (BTC), predicting a potential drop to as low as 400 satoshis.

#ADA / #BTC is breaking down, probably headed to 400 sats pic.twitter.com/ZwYZ0dxS4h

— Benjamin Cowen (@intocryptoverse) October 16, 2023

Cowen’s warning stems from an in-depth analysis of ADA’s price chart, which revealed a troubling trend that has sent ripples of concern across the market.

According to Cowen’s analysis, Cardano experienced a critical breakthrough of a key trendline, triggering a phase of accumulation before entering a subsequent downtrend.

Despite a brief consolidation phase, ADA’s gradual departure from this period led to the erosion of vital support levels.

Currently valued at 890 satoshis per ADA, Cowen anticipates a staggering 50% drop from its present level, urging investors to tread cautiously in the volatile ADA market.

ADA market cap currently at $8.6 billion. Chart: TradingView.com

Cardano Struggle With Resistance And Support Levels

Underlying ADA’s price turmoil is the persistent battle between resistance and support levels. The crucial support at $0.24 has provided a temporary foothold for the cryptocurrency, preventing a more precipitous decline.

However, multiple lower-high formations resulting from overhead bearish pressure have cast a shadow over ADA’s short-term prospects, creating a challenging environment for sustained bullish momentum.

Despite these obstacles, ADA’s price action continues to reflect a tenacious effort to resist the downward pressure and retain a foothold within the symmetrical triangle.

Yet, the looming threat of a potential downtrend breaking below the support trendline remains a tangible concern for traders and investors alike.

As the crypto community awaits further developments, the fate of Cardano’s price trajectory hangs delicately in the balance, with investors bracing for potential fluctuations in the days ahead.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Wallpaper Flare

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.