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The cryptocurrency market tumbled under selling pressure as investors awaited the U.S. consumer price index data on Thursday. Following the sell-off, ADA dipped to lows of $0.35 while trading at $0.363 currently. At the time of publication, ADA was down 10.53% in the last 24 hours, per CoinMarketCap data.
ADA prices have declined steadily in recent months. After topping $0.595 on Aug. 14, the ADA price failed to make further progress as it once again returned to trading beneath a bearish trendline.
For veteran trader Peter Brandt, the path for ADA's price remains gloomy as he predicts a further decline below the $0.25 level based on a classic descending triangle pattern. The "descending triangle" chart pattern indicated by the veteran trader refers to a bearish signal that usually forms during a downtrend as a continuation pattern.
Tomiwabold OlajideADA's price is currently at a critical juncture as a further 28% drop from current levels might bring to fruition Brandt's bearish prediction of sub-$0.25. Meanwhile, the daily RSI has crossed beneath the 30 oversold levels, which implies that ADA might see a relief rally in the near term, or at least a dead cat bounce.
Fundamentals stronger than ever
Cardano's community-focused Twitter account, ADAwhale, speaks on the market sell-off, maintaining that fundamentals are stronger than ever:
This sell off is brutal, one of those days (which we also saw in the last bear market) where $ADA specifically seems to get singled out by the market, presumably mostly leverage monkeys. It is what it is, have been throwing the occasional Bitcoin into the ADA/BTC snake pit today
— ADA whale (@cardano_whale) October 13, 2022
"This sell-off is brutal, one of those days (which we also saw in the last bear market) where ADA specifically seems to get singled out by the market, presumably mostly leverage monkeys. Fundamentals are stronger than ever, goes without saying."
Cardano's Vasil update was triggered on Sept. 22, while full capabilities were deployed on the mainnet on Sept. 27. While several positive reports of fee reductions by as large as 50% have been reported, the impact on price remains yet to be seen.
Alex Dovbnya
Vladislav Sopov
Dan Burgin