- Cardano price repeats a consolidation pattern that could lead to a 10% downswing.
- A decisive close below $1.91 will confirm a bearish outlook and crash ADA to $1.76.
- Hoskinson plans to speed up development on Hydra to meet rising society’s needs.
Even as the price of Cardano (ADA) consolidates among two intersecting trend lines, it appears to be on the verge of another plunge. This pattern, strangely, is a repeat of the one that emerged before the huge descent on October 27. Investors should expect ADA to take a step back in the future.
Cardano has already been making progress, partnering with the Ethiopian government and infiltrating several South African educational organizations. While widespread use is evident, the blockchain has experienced a significant transformation in recent months. The anticipation of the Alonzo hard fork, which enabled intelligent contracts, skyrocketed the price of ADA, but the coin has gone a long way ever since. Cardano founder Charles Hoskinson answered major issues on post-Alonzo developments, including Hydra, Plutus Application Backend (PAB), and a new AMA.
Since its introduction on September 17, Hydra, the ADA layer-2 scaling approach, has been under development. Hoskinson went on to say that they’ve been working on Hydra implementations and that they’re putting together teams to “parallelize the workstream because it was such a considerable commercial priority.”
According to Hoskinson, the Cardano blockchain would be “hammered” due to the enormous surge of users. As a result, the founder is pressing for Hydra to be implemented.
On October 27, ADA broke the trend and fell 13% before immediately rebounding. Cardano’s price has now dropped into another consolidation, with three lower highs as well as four higher lows. The development of another symmetrical triangular pattern may be seen by combining those swing locations.
This setup predicts a 6% decline, but a breakthrough will send ADA to its planned goal of $1.767. ADA might fall below the $1.680 support level in a bearish scenario.
On the other hand, if ADA succeeds in breaking through the $1.985 to $2.079 desire zone, it will signal a buyer revival. Cardano price is poised to revisit the trading range’s midpoint at $2.200 if it closes above $2.079 daily, invalidating the bullish argument.
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